Skill-biased technological change, unemployment and brain drain

Harald Fadinger and Karin Mayr-Dorn

No 89, FIW Working Paper series from FIW

Abstract: 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)
Pages: 54
Date: 2012-05
New Economics Papers: this item is included in nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.fiw.ac.at/fileadmin/Documents/Publikati ... 089-FadingerMayr.pdf full text (application/pdf)
none

Related works:
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2012:i:089

Ordering information: This working paper can be ordered from
FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna

Access Statistics for this paper

More papers in FIW Working Paper series from FIW
Bibliographic data for series maintained by ().