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Will Information Technology Lead to a Winner-Takes-All Society?

Gilles Saint-Paul

Annals of Economics and Statistics, 2001, issue 63-64, 309-319

Abstract: We develop a model where workers have two skills, "productivity" and "creativity". Productivity is the number of units of output generated by the worker's effort on the job, while creativity describes the distribution of ideas that the worker will have. Ideas are applied in order to improve productivity over a firm, or "network". We then discuss how workers will be allocated to firms in equilibrium and how network size affects the distribution of income.

Date: 2001
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