International knowledge spillovers and wage inequality in developing countries

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Please use this identifier to cite or link to this item: http://ir.lib.ncu.edu.tw/handle/987654321/29514

Title:	International knowledge spillovers and wage inequality in developing countries
Authors:	Wang,MC;Fang,CR;Huang,LH
Contributors:	經濟研究所
Keywords:	TRADE LIBERALIZATION;INCOME INEQUALITY;ECONOMIC-GROWTH;SKILL;US
Date:	2009
Issue Date:	2010-06-29 20:26:36 (UTC+8)
Publisher:	中央大學
Abstract:	In this paper, international knowledge spillovers are incorporated in a horizontal innovation model, designed to explain the observed uncertain effects that openness of trade can have on wage inequality in small developing countries. Openness of trade can produce two different effects: an increase in the relative price of less-skilled labor-intensive products and a wider skill discrepancy due to knowledge spillovers from the more to less developed country. The former triggers a fall in the wage premium, while the latter widens the wage premium gap in a developing country. These two opposing forces explain the observed uncertain effects of openness to trade on wage inequality in developing countries. (C) 2009 Elsevier B.V. All rights reserved.
Relation:	ECONOMIC MODELLING
Appears in Collections:	[Graduate Institute of Economics] journal & Dissertation

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