The DOI matches its Crossref record; 69 of the 69 references it cites were found in a registry or an index.
Patterns of Skill Premia
Abstract
This paper develops a model to analyse how skill premia differ over time and across countries, and uses this model to study the impact of international trade on wage inequality. Skill premia are determined by technology, the relative supply of skills, and trade. Technology is itself endogenous, and responds to profit incentives. An increase in the relative supply of skills, holding technology constant, reduces the skill premium. But an increase in the supply of skills over time also induces a change in technology, increasing the demand for skills. The most important result of the paper is that increased international trade induces skill-biased technical change. As a result, trade opening can cause a rise in inequality both in the U.S. and the less developed countries, and thanks to the induced skill-biased technical change, this can happen without a rise in the relative prices of skill-intensive goods in the U.S., which is the usual intervening mechanism in the standard trade models.
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Citations
Cites
Endogenous Technological Change
Romer, P. M. (1990) · Journal of Political Economy · doi:10.1086/261725 · Cited by 17,711
(2013) · American Economic Review · doi:10.1257/aer.103.5.i · Cited by 15,100
Endogenous Technological Change
Romer, P. (1989) · National Bureau of Economic Research · doi:10.3386/w3210 · Cited by 13,303
“A Model of Growth: Through Creative Destruction”
Aghion, P., & Howitt, P. (1992) · Econometrica · doi:10.2307/2951599 · Cited by 7,529
Innovation and Growth in the Global Economy.
Taylor, M. S., Grossman, G. M., & Helpman, E. (1993) · Economica · doi:10.2307/2554862 · Cited by 6,231
A Model of Growth Through Creative Destruction
Aghion, P., & Howitt, P. (1990) · National Bureau of Economic Research · doi:10.3386/w3223 · Cited by 5,634
Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Katz, L. F., & Murphy, K. M. (1992) · The Quarterly Journal of Economics · doi:10.2307/2118323 · Cited by 4,793
Innovation and growth in the global economy
Broadberry, S. (1992) · International Journal of Industrial Organization · doi:10.1016/0167-7187(92)90023-r · Cited by 3,930
Zilibotti, F., Aghion, P., Howitt, P., & Garcia-Penalosa, C. (1999) · The Canadian Journal of Economics / Revue canadienne d'Economique · doi:10.2307/136487 · Cited by 3,655
Harrison, A., Robinson, C., Ashenfelter, O., & Layard, R. (1989) · The Canadian Journal of Economics · doi:10.2307/135687 · Cited by 3,153
Cited by
Economic Origins of Dictatorship and Democracy
Acemoglu, D., & Robinson, J. A. (2005) · doi:10.1017/cbo9780511510809 · Cited by 4,810
Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
Bloom, N., Draca, M., & Van Reenen, J. (2016) · The Review of Economic Studies · doi:10.1093/restud/rdv039 · Cited by 1,521
Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence
Acemoglu, D. (1999) · American Economic Review · doi:10.1257/aer.89.5.1259 · Cited by 634
Self-citationInnovation, Firm Dynamics, and International Trade
Atkeson, A., & Burstein, A. T. (2010) · Journal of Political Economy · doi:10.1086/653690 · Cited by 608
The Effect of Trade on the Demand for Skill: Evidence from the Interstate Highway System
Michaels, G. (2008) · Review of Economics and Statistics · doi:10.1162/rest.90.4.683 · Cited by 549
Metadata
- Authors
- Acemoglu, D.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2003-04
- Volume
- 70
- Issue
- 2
- Pages
- 199-230
- ISSN
- 0034-6527 (ISSN-L)
- 1467-937X
- OpenAlex
- W2074721610
- Cited by
- 666
- References
- 69
- FWCI
- 43.20
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
