In this contribution, we present an endogenous growth model which essentially extends the idea of the paper by Murphy, Riddell and Romer (1998). In that paper, the authors assume that technical progress leads to wage differentials between high-skilled workers and unskilled workers. As technical progress occurs, the relative marginal productivity of different input changes. Yet, if there is suff...

Fairness considerations within the …rm are introduced into the determination of wages in a two factor Pissarides-style model of search unemployment to study its implications for the unemployment rates of unskilled and skilled workers in both the closed economy case and when the economy can o¤shore some inputs. While the e¤ect of a fair-wage constraint on unskilled workers takes the form of an i...

Labor turnover is a commonly-cited mechanism for the transmission of spillovers from multinational to domestic firms, but until now there has been little direct evidence for this mechanism. Using a novel matched establishment-worker database from Brazil, I present evidence consistent with the existence of positive multinational spillovers through worker mobility in Brazil. The paper explores wh...

Using qualitative information, this paper studies the labour experiences of a group of skilled Spanish migrants in Mexico City. The paper identifies two types of migrants amongst the interviewed Spaniards: TNCs transferees and “migrants in the middle” (“those who are neither low-skilled migrants nor high-skilled migrants”; Conradson and Latham, 2005a). This somehow challenges assumptions about ...

This paper studies the interlinked relationship between globalisation and technological upgrading in affecting employment and wages of skilled and unskilled workers in a middle income developing country. It exploits a unique longitudinal firm‐level database that covers all manufacturing firms in Turkey over the 1992‐2001 period. Turkey is taken as an example of a developing economy that, in tha...

The benchmark of this paper is the Fujita and Thisse (2002) core-periphery model, which adds a R&D sector with skilled labor to create new varieties for the modern sector. The number of R&D firms increases not only with the number of existing patents and knowledge spillovers but also with the number of skilled workers who can migrate and choose the region offering the better lifetime salary. Th...