This chapter theoretically examines how skill-biased technical change affects wage inequality between skilled and unskilled labor in developing countries, incorporating the context of small-scale agricultural modernization. Due to the prevalence of small-scale operations, the adoption of modern inputs and the realization of agricultural modernization necessitate an intermediate sector, the agricultural producer service sector, to facilitate this transition.

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Explaining China’s Rising Inequality: Skill-Biased Technical Change and Modernization of Small-Scale Agriculture

  • Dianshuang Wang

摘要

This chapter theoretically examines how skill-biased technical change affects wage inequality between skilled and unskilled labor in developing countries, incorporating the context of small-scale agricultural modernization. Due to the prevalence of small-scale operations, the adoption of modern inputs and the realization of agricultural modernization necessitate an intermediate sector, the agricultural producer service sector, to facilitate this transition.