An analysis of the demand for skill in a growing economy
We construct a trade theoretic model of skill formation with skill as a produced intermediate input. Capital is required for production as well as for education which transforms unskilled labor into skilled. We use this model to reflect analytically on India's rising requirement of skilled manpower. We show that even if growth of capital and supply of skilled manpower match, relative stagnation of unskilled manufacturing sector will magnify the gap between growth in demand and supply of skill. This may happen, for example, if there is a vast pool of workforce who may not have even the basic education to qualify as "unskilled" and excessive capital flows into the skilled sector. Thus a country with lack of education at a very basic level will be forced to import skilled manpower from the rest of the world.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barro, Robert J. & Mankiw, N Gregory & Sala-i-Martin, Xavier, 1994.
"Capital Mobility in Neoclassical Models of Growth,"
CEPR Discussion Papers
1019, C.E.P.R. Discussion Papers.
- Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1992. "Capital Mobility in Neoclassical Models of Growth," NBER Working Papers 4206, National Bureau of Economic Research, Inc.
- Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1994. "Capital mobility in Neoclassical models of growth," Economics Working Papers 82, Department of Economics and Business, Universitat Pompeu Fabra.
- Barro, R.J. & Mankiw, N.G. & Sala-i-Martin, X., 1992. "Capital Mobility in Neoclassical Models of Growth," Papers 655, Yale - Economic Growth Center.
- Barro, R. & Mankiw, G., 1992. "Capital Mobility in Neoclassical Models of Growth," Harvard Institute of Economic Research Working Papers 1615, Harvard - Institute of Economic Research.
- Gilbert, John & Oladi, Reza, 2009. "Capital specificity, imperfect labor mobility and growth in developing economies," International Review of Economics & Finance, Elsevier, vol. 18(1), pages 113-122, January.
- João Amador & Sónia Cabral, 2008.
"Vertical Specialization Across the World: A Relative Measure,"
w200810, Banco de Portugal, Economics and Research Department.
- Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
- Amador, João & Cabral, Sónia, 2008. "Vertical specialization across the world: a relative measure," MPRA Paper 9618, University Library of Munich, Germany.
- Banerjee, Abhijit V & Newman, Andrew F, 1993.
"Occupational Choice and the Process of Development,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 274-98, April.
- Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Toru Kikuchi & Ngo Van Long, 2009.
"A Simple Model of Service Offshoring with Time Zone Differences,"
0916, Graduate School of Economics, Kobe University.
- Kikuchi, Toru & Long, Ngo Van, 2010. "A simple model of service offshoring with time zone differences," The North American Journal of Economics and Finance, Elsevier, vol. 21(3), pages 217-227, December.
- Toru Kikuchi & Ngo Van Long, 2010. "A Simple Model of Service Offshoring with Time Zone Differences," CESifo Working Paper Series 2990, CESifo Group Munich.
- Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-78, December.
- Mehtabul Azam, 2007.
"India’s Increasing Skill Premium: Role of Demand and Supply,"
Departmental Working Papers
0710, Southern Methodist University, Department of Economics.
- Azam Mehtabul, 2010. "India's Increasing Skill Premium: Role of Demand and Supply," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-28, October.
- Azam, Mehtabul, 2009. "India's Increasing Skill Premium: Role of Demand and Supply," IZA Discussion Papers 3968, Institute for the Study of Labor (IZA).
- Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2010. "Skilled-Unskilled Wage Inequality And Urban Unemployment," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 997-1007, October.
- Reza Oladi, 2004. "Strategic quotas on foreign investment and migration," Economic Theory, Springer, vol. 24(2), pages 289-306, August.
- Chakrabarti, Avik, 2004. "Asymmetric adjustment costs in simple general equilibrium models," European Economic Review, Elsevier, vol. 48(1), pages 63-73, February.
- Jones, R.W. & Marjit, S., 1992. "International Trade and Endogenous Production Structures," RCER Working Papers 312, University of Rochester - Center for Economic Research (RCER).
- Galor, Oded & Zeira, Joseph, 1988.
"Income Distribution and Macroeconomics,"
51644, University Library of Munich, Germany, revised 01 Sep 1989.
- Saibal Kar & Basudeb Guha-Khasnobis, 2006. "Economic Reform, Skill Formation and Foreign Capital," The World Economy, Wiley Blackwell, vol. 29(1), pages 79-94, 01.
- Reza Oladi, 2005. "Stable Tariffs and Retaliations," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 205-215, 05.
- Gu Wei & Shigemi Yabuuchi, 2006. "Imperfect Labor Mobility and Unemployment in a Dual Economy," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 698-708, 09.
- Kar, Saibal & Beladi, Hamid, 2004. "Skill formation and international migration: welfare perspective of developing countries," Japan and the World Economy, Elsevier, vol. 16(1), pages 35-54, January.
- Marjit, Sugata & Beladi, Hamid, 1999. "Complementarity between Import Competition and Import Promotion," Journal of Economic Theory, Elsevier, vol. 86(2), pages 280-285, June.
- Ronald W. Jones & Sugata Marjit, 2001. "The Role of International Fragmentation in the Development Process," American Economic Review, American Economic Association, vol. 91(2), pages 363-366, May.
- Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
- Kar, Saibal & Marjit, Sugata, 2009. "Urban informal sector and poverty," International Review of Economics & Finance, Elsevier, vol. 18(4), pages 631-642, October.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:28:y:2011:i:4:p:1471-1474. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.