Skill-biased technological change, unemployment and brain drain
Harald Fadinger and
No 89, FIW Working Paper series from FIW
We develop a model of directed technological change, frictional unemployment and migration to examine the effects of a change in skill endowments on wages, employment rates and emigration rates of skilled and unskilled workers. We find that, depending on the elasticity of substitution between skilled and unskilled workers and the elasticity of the matching function, an increase in the skill ratio can reduce the relative unemployment rate of skilled workers and decrease the relative emigration rate of skilled workers (brain drain). We provide empirical estimates and simulations to support our findings and show that effects are empirically relevant and potentially sizeable.
Keywords: Directed Technological Change; Skill Premia; Unemployment; Brain Drain (search for similar items in EconPapers)
JEL-codes: F22 J61 J64 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-mig
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Journal Article: SKILL-BIASED TECHNOLOGICAL CHANGE, UNEMPLOYMENT, AND BRAIN DRAIN (2014)
Working Paper: Skill-biased technological change, unemployment and brain drain (2012)
Working Paper: Skill-biased technological change, unemployment and brain drain (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2012:i:089
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