scholarly journals The two sector model of learning-by doing and productivity differences

2012 ◽  
Vol 59 (5) ◽  
pp. 583-598
Author(s):  
Tuna Dinç
Keyword(s):  
Learning By Doing ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Income Differences ◽  
Sector Model ◽  
Skilled And Unskilled Labor ◽  
Cross Country ◽  
Relative Factor

This paper proposes that even when all countries have access to common technology frontier and can use the technologies which are fully appropriate to their needs, there will still be productivity differences across countries depending on their relative skill endowments. To illustrate this view, we have constructed a two sector model of productivity differences in which the level of technology is determined endogenously depending on the aggregate capital externalities. The relative supply of skilled and unskilled labor determines the direction of technical choices of the countries and differences in these relative factor supplies lead to cross-country income differences combined with the fact that capital is more productive in the advance of the skilled labor complement technologies than in the unskilled labor complement technologies.

scholarly journals The World Technology Frontier

2006 ◽  
Vol 96 (3) ◽  
pp. 499-522 ◽  
Author(s):  
Francesco Caselli ◽  
Wilbur John Coleman
Keyword(s):  
Skilled Labor ◽  
Simple Explanation ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Poor Countries ◽  
Aggregate Production Function ◽  
Unskilled Workers ◽  
Cross Country ◽  
Rich Countries ◽  
Lower Income Countries

We study cross-country differences in the aggregate production function when skilled and unskilled labor are imperfect substitutes. We find that there is a skill bias in cross-country technology differences. Higher-income countries use skilled labor more efficiently than lower-income countries, while they use unskilled labor relatively and, possibly, absolutely less efficiently. We also propose a simple explanation for our findings: rich countries, which are skilled-labor abundant, choose technologies that are best suited to skilled workers; poor countries, which are unskilled-labor abundant, choose technologies more appropriate to unskilled workers. We discuss alternative explanations, such as capital-skill complementarity and differences in schooling quality.

An Endogenous Technology Framework

2016 ◽  
Author(s):  
Francesco Caselli
Keyword(s):  
Factor Model ◽  
Optimal Choice ◽  
Elasticity Of Substitution ◽  
Unskilled Labor ◽  
Two Factors ◽  
Skilled And Unskilled Labor ◽  
Factors Of Production ◽  
Relative Factor ◽  
Empirical Framework ◽  
Endogenous Technology

This chapter presents an endogenous technology framework capable of rationalizing the finding that technology differences are biased toward skilled labor, reproducible capital, and labor. In this framework, firms in each country choose a technology characterized by a particular combination of efficiency units attached to different inputs. The optimal choice of technology depends on relative factor prices and, therefore, on relative factor supplies. The chapter first develops the analysis for a production function with only skilled and unskilled labor before extending the model to feature the four factors of production used in the empirical framework. The two-factor model establishes the conditions under which the intuition that countries will choose technologies that augment the abundant factor is valid. It shows that the key parameter is the elasticity of substitution between the two factors of production.

Wage Inequality and Structure of Consumption Demand

2011 ◽  
Author(s):  
Takeo Hori
Keyword(s):  
Wage Inequality ◽  
Low Income ◽  
High Income ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Skilled And Unskilled Labor ◽  
Structure Of Consumption ◽  
Consumption Goods ◽  
Consumption Demand

We present a model in which there is a variety of consumption goods, of which high-income individuals purchase the expensive ones that low-income individuals cannot afford. Increases in the relative supply of skilled workers suggest relative increases in the number of high-income individuals in our model. Increases therefore in the relative supply of skilled workers induces changes in consumption demands, which indirectly affect both the labor demands of firms and the relative skilled wage. We show that a) if expensive goods purchased only by high-income individuals are more skilled labor intensive goods and b) if the substitution between skilled and unskilled labor is limited in the production of each good, then an exogenous increase in the relative supply of skilled workers raises the relative skilled wage.

Migration in a model of occupational choice

2008 ◽  
Vol 1 (1) ◽  
pp. 84-94 ◽  
Author(s):  
Sahana Roy Chowdhury
Keyword(s):  
Occupational Choice ◽  
Developing Economies ◽  
Wealth Inequality ◽  
Theoretical Explanation ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Empirical Observation ◽  
Content Type ◽  
Skilled And Unskilled Labor ◽  
Relative Migration

PurposeThe purpose of this paper is to provide a theoretical explanation for the empirical observation that the relative migration of unskilled (skilled) labor tends to occur from developing economies that are relatively unequal (equal).Design/methodology/approachWealth inequality is related with migration incentives of skilled and unskilled labor in a model of occupational choice using a two‐period overlapping generations framework.FindingsIt is shown that high inequality creates a disincentive to migrate for skilled labor. Too much equality however creates a disincentive to migrate for unskilled labor. Thus, a highly unequal (equal) economy sustains unskilled (skilled) labor migration only.Originality/valueRelative to the existing theoretical literature on migration, the distinguishing feature of this model is that it has entrepreneurship as an alternative occupational choice. This implies that the incentive to migrate is not affected solely by wage differentials across countries. It is shown that in a highly unequal developing economy there is no skilled migration – despite the gap between the skilled wage of the source economy and that of the foreign economy – in equilibrium.

Immigration and Security—Post 9/11 United States

2018 ◽  
Vol 17 (4) ◽  
pp. 451-472
Author(s):  
Nalanda Roy
Keyword(s):  
United States ◽  
September 11 ◽  
Family Reunification ◽  
Economic Interest ◽  
Unskilled Labor ◽  
The Us ◽  
Skilled And Unskilled Labor ◽  
The Way

AbstractThis article explores the changing relationship between immigration and security in the post-9/11 United States. When it comes to immigration before 9/11, security was not the overarching concern in the US; rather, the focus was on economic interest, skilled and unskilled labor, family reunification, etc. However, immediately after 9/11, security became indisputably prioritized. In fact, September 11 changed the way Americans started to look at security, and this led to a thickening of the balance between the two.

scholarly journals Spatial Dynamics of Internal Migration Flows of the Skilled and Unskilled in Mexico

2020 ◽  
Author(s):  
Miguel Flores Segovia ◽  
Eliud Silva
Keyword(s):  
Internal Migration ◽  
Census Data ◽  
Relative Concentration ◽  
Spatial Dynamics ◽  
Unskilled Labor ◽  
Geographical Patterns ◽  
Economic Agglomeration ◽  
Skilled And Unskilled Labor ◽  
Migratory Patterns ◽  
Relationship Of

ABSTRACT: The dynamics of the internal migration is a crucial element in the composition of the workforce of a certain region, so its analysis contributes to the better understanding of labor markets and sociodemographic changes in a region. In order to characterize the most recent patterns of migratory flows of skilled and unskilled labor, census data are considered for the periods 1995-2000, 2005-2010 and 2010-2015. The analysis considers different indicators that describe the intensity and relative concentration of interstate migration. Changes in migratory patterns are evident; a lower concentration of internal migration whose effect is more marked for unskilled labor. That is, it is observed that the number of states that play a preponderant role in the redistribution of labor in Mexico has increased. The relationship of domestic labor mobility is evident to the regional transformation as a result of new geographical patterns of location of investment, production and economic agglomeration.

scholarly journals A study on the effect of productivity on the wage level, with emphasis on the productivity of skilled and unskilled labor

Accounting ◽  
2018 ◽  
pp. 93-100 ◽  
Author(s):  
Hossein Akbari Fard ◽  
Sayyed Abdolmajid Jalaee ◽  
Seyed Bagher Fazayel Ardakani
Keyword(s):  
Unskilled Labor ◽  
Wage Level ◽  
Skilled And Unskilled Labor

scholarly journals Firm-Embedded Productivity and Cross-Country Income Differences

2020 ◽  
Author(s):  
Vanessa Alviarez ◽  
Javier Cravino ◽  
Natalia Ramondo
Keyword(s):  
Income Differences ◽  
Cross Country

Human Development Status and Regional Disparity in China

2014 ◽  
Vol 02 (02) ◽  
pp. 1450019
Author(s):  
Ying ZHANG ◽  
Bin ZHANG
Keyword(s):  
Human Development ◽  
Regional Disparity ◽  
Three Dimensions ◽  
Income Differences ◽  
Education And Health ◽  
Country Comparison ◽  
The Status ◽  
Cross Country ◽  
Nations Development ◽  
Shed Light

The 2010 United Nations Development Programme (UNDP) Global Human Development Report introduced a new methodology to calculate Human Development Index (HDI). Three dimensions of HDI i.e. income, education, and health are adjusted for inequalities in attainments across people. The paper uses the new methodology to estimate 2010 China's national and provincial HDI. Compared with UNDP global report, all the data used here are from China's domestic sources. The education indicator estimated here by referring to detailed local statistics and documents are higher than that in UNDP's global report, thus contributing a slight higher overall HDI estimate. Based on the estimation results here and UNDP's report, China is located in between high human development and low human development, in other words, placed around the half position among all 169 countries. To facilitate a cross-country comparison, the indices are normalized with reference to the goalposts outlined in the HDR 2010. When ranked according to global goalposts, Beijing's rank is 31 whereas the least developed Tibet only ranks 114. Most of the regional disparity is driven by their income differences. The findings of this paper try to shed light on the status of China's human development and also gain insights on China's regional disparity. Further research is required to explore the inter-linkages between inequalities across various dimensions and to examine the factors behind these inequalities.

Sign in / Sign up

Export Citation Format

Share Document