The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries

The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries

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This paper draws on existing empirical literature and an original theoretical model to argue that globalization and skill supply affect the extent to which technology adoption in developing countries favors skilled workers. Developing countries are experiencing technical change that is skill-biased...

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Bibliographische Detailangaben
1. Verfasser: Behar, Alberto (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C International Monetary Fund 2013
Schriftenreihe:IMF Working Papers Working Paper No. 13/50
Online-Zugang:DE-20
DE-824
DE-70
DE-155
DE-29
DE-22
DE-473
DE-1102
DE-703
DE-859
DE-706
DE-384
DE-860
DE-19
DE-739
DE-355
DE-Aug4
DE-1049
DE-12
DE-91
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Beschreibung
Zusammenfassung:This paper draws on existing empirical literature and an original theoretical model to argue that globalization and skill supply affect the extent to which technology adoption in developing countries favors skilled workers. Developing countries are experiencing technical change that is skill-biased because skill-biased technologies are becoming relatively cheaper. Increased skill supply further biases technical change in favor of skilled labor. Free trade induces technology that favors skilled workers in skill-abundant developing countries and that favors unskilled workers in skill-scarce developing countries, and therefore amplifies the predicted wage effects of trade liberalization. These features aid our understanding of the observed rises in inequality within developing countries and the absence of a significant downward effect of expanded educational attainment on skill premia. They also help account for the large and differential effects of trade liberalization on inequality. These findings are pertinent for the Middle East and North Africa because of its recent increase in trade openness and remarkable rise in educational attainment
Beschreibung:1 Online-Ressource (31 p)
ISBN:147553695X
9781475536959

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