Globalization, technical change and the skill premium: magnification effects from human - capital investments
AbstractThis paper shows that endogenous adjustments in the composition of labour supplies magnify the effects of changes in commodity prices on the measured skill premium under quite plausible conditions. These composition effects arise from decisions of individuals with heterogeneous inherent abilities about acquiring human capital. They reinforce the well-known Stolper - Samuelson effect on the measured skill premium in countries with a sufficiently high relative supply of skilled labour, but compensate them otherwise. As a result, the model can account for the observation of a worldwide increase in the skill premium during the last two decades.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.
Volume (Year): 12 (2003)
Issue (Month): 4 ()
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Web page: http://www.tandfonline.com/RJTE20
Other versions of this item:
- Jürgen Meckel & Benjamin Weigert, 2032. "Globalization, Technical Change, and the Skill Premium : Magnification Effects from Human-Capital Investments," Working Papers of the Research Group Heterogenous Labor 03-04, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- Feenstra, R.C. & Hanson, G.H., 1995.
"Foreign Investment, Outsourcing and Relative Wages,"
95-14, California Davis - Institute of Governmental Affairs.
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- Christian Lumpe & Benjamin Weigert, 2004. "Immigration, Education and Labour Market Institutions," Working Papers of the Research Group Heterogenous Labor 04-14, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
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