Effects of international diffusion of a General Purpose Technology on wage inequality

• Type: Article in International Scientific Journal
• Date: 2013

Authors

Óscar Afonso (Author) FEP; Ana Maria Bandeira (Author) Other

Journal

Title: Hitotsubashi Journal of Economics

Vol. 54 No. 2

Pages: 203-220

ISSN: 0018-280X

Publisher: Sanseido Publishing Company, Ltd.

Indexing

ISI Web of Knowledge - 0 Citations

ISI Web of Science

Scopus

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-008-QN5

Abstract (EN): This paper studies the effects of the diffusion of a General Purpose Technology (GPT) that spreads first within the developed North country of its origin, and then to a developing South country. In the developed general equilibrium growth model, each final good can be produced by one of two technologies. Each technology is characterized by a specific labor complemented by a specific set of intermediate goods, which are enhanced periodically by Schumpeterian R&D activities. When quality reaches a threshold level, a GPT arises in one of the technologies and spreads first to the other technology within the North. Then, it propagates to the South, following a similar sequence. Since diffusion is not even, neither intra- nor inter-country, the GPT produces successive changes in the direction of technological knowledge and in inter- and intra-country wage inequality. Through this mechanism the different observed paths of wage inequality can be accommodated.

Language: English

Type (Professor's evaluation): Scientific