Distant labour supply, skills and induced technical change

Ashima Goyal

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

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)
Pages: 26 pages
Date: 2006-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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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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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2006-014

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