Time Zones, Factor Prices and Inflow of Educational Capital: Changing Sectoral Composition
AbstractTime Zone difference induced changes in trade and factor prices are relatively new concerns in trade literature. Here in this paper we formulate a trade model capturing the issue of Time Zone difference and communication technology revolution together to show that due to these developments skilled workers benefit. Though wage inequality between skilled and unskilled workers is widened under reasonable and, of course, sensible condition. Return to capital dwindles while educational capital gets relatively high return.These changes also attract educational capital from abroad and eventually alter the sectoral composition of the economy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50883.
Date of creation: Sep 2013
Date of revision:
Time Zone Differences; Trade in Business Services; Skilled and Unskilled Labor; Day-shift and Night-shift Work; Educational Capital;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-02 (All new papers)
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