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Globalization, Skill Accumulation and the Skill Premium

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  • Kirill Borissov
  • Joël Hellier

Abstract

We analyze the impact of globalization upon the skill premium (inequality) in advanced countries from a two‐goods North–South model with skill accumulation. Globalization consists of an increase in the size of the South. Its impact on inequality depends on its intensity and on the pre‐globalization proportion of skilled workers. The post‐globalization inequality is a non‐monotonic function of the pre‐globalization proportion of skilled workers and of the globalization intensity. The impact is different for the generation in work and for the following generations. There is a threshold value of the skill endowment under (above) which inequality is lower (higher) after than before globalization.
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  • Kirill Borissov & Joël Hellier, 2013. "Globalization, Skill Accumulation and the Skill Premium," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 220-234, May.
    • Handle: RePEc:bla:rdevec:v:17:y:2013:i:2:p:220-234
    DOI: 10.1111/rode.2013.17.issue-2
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    Cited by:

    1. Joel HELLIER, 2023. "Increasing skill premium and education decisions: Higher intra-skilled inequality and lower inter-skill mobility," Working Papers 643, ECINEQ, Society for the Study of Economic Inequality.
    2. Falvey, Rod & Greenaway, David & Silva, Joana, 2010. "Trade liberalisation and human capital adjustment," Journal of International Economics, Elsevier, vol. 81(2), pages 230-239, July.
    3. Nathalie Chusseau & Joel Hellier, 2014. "Globalization and social segmentation," Working Papers 339, ECINEQ, Society for the Study of Economic Inequality.
    4. Tatsuya Asami, 2021. "Timing of international market openings and shrinking middle‐income class," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2275-2297, November.
    5. Joel HELLIER, 2021. "Globalization and Inequality in Advanced Economies: A Provisional Assessment," Working Papers 575, ECINEQ, Society for the Study of Economic Inequality.

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