Abstract:
Demand for less skill decreased. They argue that pervasive skill biased technological change rather than increased trade with developing world is the principal culprit.The pervasiveness of this technological change is important because:1)immediate and testable implication of technological change ; 2) the more pervasive the skill biased technological change, the greater increase in the embodied supply of less skilled workers and the greater the depressing effect on their relative wagws through world goods prices. In contrast, in the heckerscher-Ohlin model with small open economies, the skill-biased of local technological changes do not affect wages.
More papers in Research Institute of Industrial Economics Working Papers from Research Institute of Industrial Economics (IFN) Address: Research Institute of Industrial Economics (IFN) ; B.O. Box 55665, SE-102 15 Stockholm, Sweden Contact information at EDIRC. Series data maintained by Thomas Krichel ().