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-ladder growth model where the lagging economy...
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| Format: | Article |
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Wiley
2016
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| Online Access: | https://eprints.nottingham.ac.uk/34141/ |
| _version_ | 1848794783039881216 |
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| 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-ladder 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 that 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 | 2025-11-14T19:21:40Z |
| format | Article |
| id | nottingham-34141 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:21:40Z |
| publishDate | 2016 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-341412020-05-04T18:21:24Z https://eprints.nottingham.ac.uk/34141/ 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-ladder 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 that 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 2016-11-11 Article PeerReviewed Impullitti, Giammario (2016) Global innovation races, offshoring and wage inequality. Review of International Economics, 24 (1). pp. 171-202. ISSN 1467-9396 http://onlinelibrary.wiley.com/doi/10.1111/roie.12202/abstract doi:10.1111/roie.12202 doi:10.1111/roie.12202 |
| spellingShingle | 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 |
| url | https://eprints.nottingham.ac.uk/34141/ https://eprints.nottingham.ac.uk/34141/ https://eprints.nottingham.ac.uk/34141/ |