This paper develops a growth model aimed at understanding the potential effects of globalization of production on rate of innovation, distribution of skilled labor income between the North and South, and welfare of skilled workers in both regions. We adopt a dynamic general equilibrium productcycle model, assuming that the North specializes in innovation and the South specializes in imitation. ...

Workers in industries with growing export exposure have lasting earning gains: 1. We analyze at which margin export shocks are capitalized into earnings gains: on-the-job with the original employer or in a different firm but within the original industry? 2. Detect meaningful heterogeneity in the export adjustment mechanisms: Are gains from exports reaped by all workers or do better skilled work...

W age inequality has increased dramatically in the United States since the late 1970s. In particular, we have witnessed growing wage differences between groups defined by observed skills such as education or experience. For example, the college premium—that is, the percentage difference between the average wages of college-educated and noncollege-educated workers—increased by a factor of four. ...

The Atkinson-Stiglitz theorem on uniform consumption taxation breaks down if prices are endogenous. This paper investigates the implications for optimal food subsidies in China. To do so, we build a general equilibrium model where low-skilled workers have comparative advantage production of food. Food raise relative demand workers, which reduces skill premium and indirectly redistributes income...

When do labor laws protect workers from workplace risks, and when do they serve to institute or insulate the privilege of particular political and economic actors? This paper argues that Latin American labor laws are highly politicized, and have been since their early origins. In the early decades of the twentieth century, the first labor codes were formulated to favor skilled, unionized labor ...

This paper presents a model which captures the technological spillovers created by foreign direct investment in Transition Economies. Skill-biased technological change is linked with endogenous labor supply which allows for unemployment. The technological spillover is divided into a neutral technological change and a skill-biased technological change. The first effect makes labor and capital mo...

Migration and regional inequality are two interrelated concepts. Inequality between regions can lead to migration. High-skilled migration, or migration of high-quality human resources, has great potential reduce interregional disparities by helping development in the destination area. However, reality, flow high-skilled tends more advanced provinces, especially capital its surroundings. This co...

The paper revisits the debate on trickle-down growth in view of the widely discussed evolution of the earnings and income distribution that followed a massive expansion of higher education. We propose a dynamic general equilibrium model to dynamically evaluate whether economic growth triggered by an increase in public education expenditure on behalf of those with high learning ability eventuall...

The wage distribution has been almost stable in Japan for the last two decades, contrary to findings in the USA, Canada, and the UK. The change in the wage distribution during this period was almost completely caused by a distributional change in workers’ attributes. This implies that skill prices were very stable between 1982 and 2002. Both demand and supply for skilled workers have increased ...

In recent years, crowd sourcing has emerged as a good solution for digitizing voluminous tasks. What’s more, it offers a social solution promising to extend economic opportunities to low-income countries, alleviating the welfare of poor, honest and yet uneducated labor. On the other hand, crowd sourcing’s virtual nature and anonymity encourages fraudulent workers to misuse the service for quick...