Structural Change and Wage Inequality in the Manufacturing Sector: Long Run Evidence from East Asia

Published on 1 April 2015

This paper analyses the long run determinants of wage inequality in the manufacturing sector for a group of East Asian countries that have experienced rapid structural transformations in recent decades. In line with the skill biased technological change hypothesis, our results show that within manufacturing structural change which fosters the participation of higher skilled workers is a strong determinant of the wage premium.

However, the paper also highlights an unusual feature of the East Asian model, showing how well-designed education policies, prudent macroeconomic management and selective policies towards foreign capital can help to buffer the pressure of structural change on wage inequality, even in an open economy context.


Image of Bruno Martorano
Bruno Martorano

Postdoctoral Fellow

Publication details

Martorano, B.
Oxford Development Studies, volume 43, issue 2


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Research themes
Inclusive Economies

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