Global innovation races, offshoring and wage inequality
In the 1970s and 1980s the US position as the global technological leader was increasingly challenged by Japan and Europe. In those years the US skill premium and residual wage inequality increased substantially. This paper presents a two-region quality ladders growth model where the lagging economy...
| Main Author: | |
|---|---|
| Format: | Article |
| Published: |
Wiley
2015
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/30292/ |
| _version_ | 1848793957420498944 |
|---|---|
| author | Impullitti, Giammario |
| author_facet | Impullitti, Giammario |
| author_sort | Impullitti, Giammario |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | In the 1970s and 1980s the US position as the global technological leader was increasingly challenged by Japan and Europe. In those years the US skill premium and residual wage inequality increased substantially. This paper presents a two-region quality ladders growth model where the lagging economy progressively catches up with the leader. As the innovation gap closes, the advanced country experiences fiercer foreign technological competition which forces its firms to innovate more. Faster technical change increases the skill premium and residual inequality. Offshoring production and innovation plays a key role in shaping the link between international competition and inequality. |
| first_indexed | 2025-11-14T19:08:33Z |
| format | Article |
| id | nottingham-30292 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:08:33Z |
| publishDate | 2015 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-302922020-05-04T20:11:07Z https://eprints.nottingham.ac.uk/30292/ Global innovation races, offshoring and wage inequality Impullitti, Giammario In the 1970s and 1980s the US position as the global technological leader was increasingly challenged by Japan and Europe. In those years the US skill premium and residual wage inequality increased substantially. This paper presents a two-region quality ladders growth model where the lagging economy progressively catches up with the leader. As the innovation gap closes, the advanced country experiences fiercer foreign technological competition which forces its firms to innovate more. Faster technical change increases the skill premium and residual inequality. Offshoring production and innovation plays a key role in shaping the link between international competition and inequality. Wiley 2015 Article PeerReviewed Impullitti, Giammario (2015) Global innovation races, offshoring and wage inequality. Review of International Economics . ISSN 1467-9396 (In Press) Wage Inequality Heterogeneous Workers International Technology Diffusion Endogenous Technical Change Offshoring |
| spellingShingle | Wage Inequality Heterogeneous Workers International Technology Diffusion Endogenous Technical Change Offshoring Impullitti, Giammario Global innovation races, offshoring and wage inequality |
| title | Global innovation races, offshoring and wage inequality |
| title_full | Global innovation races, offshoring and wage inequality |
| title_fullStr | Global innovation races, offshoring and wage inequality |
| title_full_unstemmed | Global innovation races, offshoring and wage inequality |
| title_short | Global innovation races, offshoring and wage inequality |
| title_sort | global innovation races, offshoring and wage inequality |
| topic | Wage Inequality Heterogeneous Workers International Technology Diffusion Endogenous Technical Change Offshoring |
| url | https://eprints.nottingham.ac.uk/30292/ |