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Technology, skill, and growth in a global economy

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  • Jaewon Jung

    (Korea Economic Research Institute
    RWTH Aachen University
    THEMA, Université de Cergy-Pontoise)

Abstract

This paper develops an endogenous growth model based on a Roy-like assignment model in which heterogeneous workers endogenously sort into different technologies/tasks according to their comparative advantage. By modeling explicit distinction between worker skills and tasks as well as incorporating task-specific technologies, we analyze in depth the technology-skill-growth and offshoring-growth links that are absent in traditional models of endogenous growth. We show that offshoring increases domestic aggregate productivity, welfare and growth due to technology-upgrading mechanism.

Suggested Citation

  • Jaewon Jung, 2019. "Technology, skill, and growth in a global economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(3), pages 609-641, October.
    • Handle: RePEc:spr:joecth:v:68:y:2019:i:3:d:10.1007_s00199-018-1136-6
    DOI: 10.1007/s00199-018-1136-6
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    More about this item

    Keywords

    Endogenous growth; Technology-augmented skill distribution; Worker/firm heterogeneity; Offshoring; Technology upgrading; Skill upgrading;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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