Technology, trade and inequality in Europe
Technological change and international trade have changed the
structure of advanced economies, the patterns of demand for labour,
the distribution between wages and profits and within wages, resulting
in greater polarization and inequality. The article provides a
review and original evidence on the mechanisms that have linked
innovation and trade to inequality, considering the role of different
technological strategies and patterns of international integration across
industries. The increase of inequality is assessed in terms of the relative
growth of wages and profits, on the polarization of the employment
structure on the basis of skills, and on the polarization of wages.