Distant Labour Supply, Skills and Induced Technical Change
Ashima Goyal
Labor Economics Working Papers from East Asian Bureau of Economic Research
Abstract:
To analyze the consequences of new technologies, which make it possible to employ distant labour, we model a developed country with high and medium-skilled labour interacting with an emerging market economy (EME) with medium and low-skilled labour. Expansion in labour supply induces medium-skill biased technical change, which raises the demand for such labour. As a result, inequalities tend to fall in the developed country, skill premiums rise marginally in the EME, but equality rises because labour employed in the low-skilled sector shrinks. Inequality falls across the countries since average wages, information and access rise in the EME.
Keywords: Internet and communication technology; induced technological change; relative factor supplies; labour skills. (search for similar items in EconPapers)
JEL-codes: J61 O14 O31 (search for similar items in EconPapers)
Date: 2006-01
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Related works:
Journal Article: Distant labour supply, skills and induced technical change (2007) 
Working Paper: Distant labour supply, skills and induced technical change (2006) 
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