Social and Behavioral Sciences Commons^™

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. We carry out an analysis across 10 manufacturing and service sectors in seven European countries (France, Italy, Germany, the Netherlands, Portugal, Spain and the UK), for two time periods. In addition to structural economic variables, we draw data from two waves of the Community Innovation Surveys (CIS 2, 1994–1996 and CIS3, 1998–2000) and from two waves of the European Community Household Panel (ECHP, …