Technology spillover and wage inequality

Chen, Fang; Huang, Li Hsuan; Wang, Ming cheng

doi:10.1016/j.econmod.2007.05.002

Cited by 34 publications

(7 citation statements)

References 27 publications

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“…In CSM steady-state equilibrium the aggregate level of output is 11 9 Conditions J L(H) > V L and W L(H) > U H must hold. We can obtain the CSM equilibrium condition by processing the corresponding Bellman equations.…”

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confidence: 99%

Low-skill offshoring and welfare compensation policies

Agnese¹,

Hromcová

2016

Economic Modelling

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We analyze the e¤ects of low-skill o¤shoring on welfare. In the context of a matching model with di¤erent possible equilibria, we discuss two alternative policies that could potentially outweigh the negative welfare e¤ects of o¤shoring, namely, a change of the unemployment bene…ts and the ‡exibilization of the labor market. Our calibrations for the German economy suggest that the ‡exibilization of the labor market can bring low-skill workers to pre-o¤shoring welfare levels by slightly reducing the vacancy costs, something that cannot be accomplished by meddling with the unemployment bene…ts scheme. In addition, we …nd that a full compensation can be achieved by an upgrading of low-skill workers, its size depending on the type of equilibrium involved. In sum, our analysis gives support to ‡exibilization and upgrading by education as best therapies for o¤shoring.

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confidence: 99%

Low-skill offshoring and welfare compensation policies

Agnese¹,

Hromcová

2016

Economic Modelling

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“…According to this view, in developing economies, unskilled labour is abundant, and technological progress thus improves productivity. As a result, knowledge spillovers could increase the income of unskilled workers (see Fang, Huang and Wang, 2008), fostering a better income distribution.…”

Section: Income Inequality In Brazil: What Has Changed In Recent Yearmentioning

confidence: 99%

“…Another key variable in the analysis of income inequality is technological development (Acemoglu and Newman, 2002;Madsen, 2007;Fang, Huang and Wang, 2008). In this analysis, we us a proxy for technological development, namely, the ratio of patents granted in each state to total patents granted by Brazil in a given year (PAT), based on data from the National Institute of Industrial Property.…”

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confidence: 99%

Income inequality in Brazil: What has changed in recent years?

Mendonça¹,

Esteves²

2014

CEPAL Review

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This paper provides empirical evidence to assess the impact of socioeconomic and political variables on different measures of income inequality based on the 27 units of the Brazilian federation in the period from 1999 to 2008. The Brazilian experience is a good example for understanding the income inequality policies in developing countries. The findings suggest that the improvement observed along the period under analysis is a result of the combination of increased trade openness, technological and financial development, a reduction in the unemployment rate, the adoption of social policies that imply a direct effect on the poorest families and the adoption of mechanisms against corruption.

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“…4. A few works, such as Acemoglu (1998, 1999, 2002a, 2002b), Kiley (1999), Sener (2001), Ranjan (2001), Fang et al (2008) and Wang et al (2009), analyse the skilled–unskilled wage inequality in dynamic models. Some other works, like Anwar and Rice (2009), and Anwar (2006, 2009), deal with these problems using static-product-variety models of imperfect competition.…”

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confidence: 99%

Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis

Dutta

Ghosh

2021

Foreign Trade Review

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This article develops a static three-sector and five-factor competitive general equilibrium model of a small open economy: sector 1 is the rural agricultural sector, which produces products using informal or unorganised unskilled labour and land as inputs; sector 2 is the urban manufacturing, final-goods-producing sector that produces products with the help of unskilled labour, who get unionised wages, and capital; and sector 3 is the service sector, which uses skilled labour with formal wages, capital and sophisticated hi-technology-intensive imported intermediate goods produced abroad as inputs. We show that an exogenous increase in capital inflow or an increase in tariff on imported intermediate input reduces the skilled–unskilled wage inequality and lowers unemployment as long as the return to capital is unaltered and output adjustments absorb the entire shock of the two policies. Such capital inflow increases rural wage and reduces unemployment via the Harris Todaro mechanism but interestingly does not allow the skilled wage to increase. Thus, two critical policy targets can be accommodated at the same time. JEL Codes: F13, J31, J46

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Technology spillover and wage inequality

Cited by 34 publications

References 27 publications

Low-skill offshoring and welfare compensation policies

Low-skill offshoring and welfare compensation policies

Income inequality in Brazil: What has changed in recent years?

Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis

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