Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefi t from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional confl ict that might turn into heterogeneous attitudes toward FDI infl ows in line with skill. In this paper ...

Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefi t from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional confl ict that might turn into heterogeneous attitudes toward FDI infl ows in line with skill. In this paper ...

The present paper analyses the challenge to redistribution programs posed by an increase in skill premium. The increase in skill premium, which we observe in most OECD countries, affects taxation through its effect on education and migration incentives. We demonstrate that in countries with a relatively egalitarian wage distribution, the response to an increased gap in wages is likely to be inc...

This paper assesses the impact of investmentand education-specific technical change on occupational transition and the skill premium in a model with human capital. In this framework, human capital augments labour productivity and also facilitates the transition to skilled employment. In line with empirical evidence, this setup predicts that an increase in the productivity of physical capital (i...

[Foreign trade involves tasks that may be subject to language barriers, such as researching foreign markets, communicating with counterparties and marketing products to foreign consumers. Language skills have a wage premium that is determined by local and worldwide supply and demand for language services, and the premium is specific to each country and pair of languages. I construct a novel mea...

This paper studies the impact of trade liberalization on technology adoption and its e ect on wage inequalities. We develop a trade model with heterogeneous rms introducing a xed technology cost and di erent types of skilled labor. The contribution of this paper is to develop a possible explanation to the increase in the skill premium in developping countries. The traditional framework, H-O-S, ...

The evolution of the skill premium (i.e., the wage differential between skilled and unskilled workers) has interest from at least two perspectives: it is a rough measure of inequality among workers of different qualifications and provides information on the characteristics of the development process of the economy. In this paper, I investigate empirically the evolution of the skill premium in C...

Public–private sectoral wage differentials have been studied extensively using quantile regression techniques. These typically find large public sector premiums at the bottom of the wage distribution. This may imply that low skill workers are ‘overpaid’, prompting concerns over efficiency. We note several other potential explanations for this result and explicitly test whether the premium varie...