Description:

The goal of this project, which is part of the Collaborative Research Center (SFB) "From Heterogeneities to Inequalities" (SFB 882), is to broaden and deepen our understanding of how technological progress influences various mechanisms that transform heterogeneities in formal qualification (general skills) into inequalities in pay. It puts particular attention to the differing dynamics of specific (non-observable) skills. The project studies this issue by developing an empirically founded, agent-based simulation model of a closed economy, allowing explicit modeling of the interaction between heterogeneous individuals under different institutional conditions and explaining aspects of economic dynamics, such as technological progress, as endogenous phenomena.