I consider an economy where skilled and unskilled workers use different technologies. The rate of improvement of each technology is determined by a profit-maximizing R&D sector. When there is a high proportion of skilled workers in the labor for ce, the market for skill complementary technologies is larger and more effort will be spent in upgrading the productivity of skilled workers.
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Paper provided by Massachusetts Institute of Technology (MIT), Department of Economics in its series Working papers with number
97-14.
Length: 39 pages Date of creation: 1997 Date of revision: Handle: RePEc:mit:worpap:97-14
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