Directed technical change, the elasticity of substitution and wage inequality in developing countries
We develop a model of endogenous skill-biased technical change in developing countries.� The model reconciles wildly dispersed existing estimates of the elasticity of substitution between more and less educated workers.� It also produces an estimating equation for the elasticity, which allow us to produce overdue estimates for developing countries.� With four types of data, elasticity estimates for developing countries are consistently about 2.� In a skill-biased technical change framework, this estimate makes sense of what appears to be little or no correlation between relative skill supply and wage inequality.
|Date of creation:||01 Dec 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:467. 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: (Caroline Wise)
If references are entirely missing, you can add them using this form.