Afonso, Óscar; Neves, Pedro; Thompsom, Maria - Faculdade de Economia, Universidade do Porto - 2010
We examine the behavior of the skill premium in a two-country general equilibrium growth model assuming (i) technological-knowledge diffusion; (ii) internal costly investment in both physical capital and R&D; and (iii) complementarities between intermediate goods in production. We find that these...