publication . Preprint . Research . 2003

Directed Sector and Skill-Specific Technological Change: The Development of Wages for the High and Low Skilled

Antony, Jürgen;
Open Access
  • Published: 01 Feb 2003
  • Country: France
Abstract
This paper presents a dynamic two sector, two skill groups model of endogenous skill and sector specific technological change. The sectors refer to a “high-tech” and a “low-tech” sector of an economy. The direction of technological change is driven by market forces determined by the skill composition of the work force. It is shown that a change in this skill composition - a higher growth rate of the high skilled workforce in the “high-tech” sector than in the “low-tech” sector - leads to an increasing relative wage of the high skilled despite the fact that the aggregate supply of the high skilled might rise. This directed technological adjustment can easily over...
Subjects
free text keywords: wage inequality, directed technological change, endogenous growth, international trade, E25, J31, O31, F16, wage inequality, directed technological change, endogenous growth, international trade, jel:E25, jel:J31, jel:O31, jel:F16, ddc:330
Related Organizations

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publication . Preprint . Research . 2003

Directed Sector and Skill-Specific Technological Change: The Development of Wages for the High and Low Skilled

Antony, Jürgen;