In this article we improve on the literature dealing with the polarising effects of technological change on wages by proposing more rigorous definitions of wage dispersion within industries and of the different types and effects of innovation.\ud
We carry out an analysis across 10 manufacturing and service sectors in seven\ud
European countries (France, Italy, Germany, the Netherlands, Portugal, Spain and\ud
the UK), for two time periods. In addition to structural economic variables, we\ud
draw data from two waves of the Community Innovation Surveys (CIS 2, 1994–\ud
1996 and CIS3, 1998–2000) and from two waves of the European Community\ud
Household Panel (ECHP, 1994 and 2001) providing information on employment,\ud
wages, education and other individual’s characteristics, that we grouped in three\ud
skill groups: managers and professionals, white-collar and blue-collar workers.\ud
We set up econometric models to study the impact that different technological\ud
strategies, labour market patterns, education and training have on the levels of\ud
wage polarisation within industries. Higher wage polarisation is found in\ud
industries with strong product innovation and high shares of workers with\ud
university education. Wage compression is associated to the diffusion of new\ud
process technologies and to high shares of workers with secondary education
This paper investigates the causes of disproportionate increases of sovereign yields with respect to the interest rate on the 10 years German Bund within the Eurozone. Empirical evidence drawn from the Bank for International Settlements dataset on banks' portfolios shows that rapid financial integration, following the launch of the monetary union, resulted in excess exposure of Core countries' banks in the Peripheral countries' financial assets. In order to endogenize the possibility of contagion effects, we conduct econometric estimates through a Global Vector Autoregressive model, where each country's spread depends upon all Eurozone countries' spreads. Results show that after the burst of the financial crisis the Core countries' sovereign yields are essentially determined by the international risk aversion, whereas the spreads of Peripheral countries mainly depend on fundamentals, namely the public debt/GDP ratio and the Real Effective Exchange Rate values with respect to the Eurozone average. These results are supported by the estimate of an impulse response analysis. Macroeconomic failures in public finances and competitiveness seem to originate the exceptional increases in sovereign spreads of the Periphery, through a contagion effect which is limited to this group of Eurozone countries.Keywords Sovereign bond spreads Á Monetary union Á International risk aversion Á Contagion JEL Classification E42 Á F36 Á F42 Á G12 Á H63
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