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Skill Bias magnified: Identifying the role of international technology diffusion

Patrick Schulte

Journal of International Economics, 2021, vol. 129, issue C

Abstract: This paper studies whether innovations underlying skill-biased technical change diffuse internationally and thereby contribute to the increasing skill demand and inequality in other countries. Using a new empirical framework and sectoral data for a panel of 40 emerging and developed countries, 25 industries and the period from 1995 to 2007, the analysis shows that technology diffusion is statistically and economically important in explaining skill-biased technical change. The results hold for both advanced and emerging economies, as well as in several robustness checks.

Keywords: Advanced and emerging economies; Distance; Industry-level data; Input-output linkages; Skill-biased technical change; Technology diffusion (search for similar items in EconPapers)
JEL-codes: F16 J24 O14 O33 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jinteco.2021.103442

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