Fadinger, Harald; Mayr, Karin - In: Journal of the European Economic Association 12 (2014) 2, pp. 397-431
We develop a model of directed technology adoption, frictional unemployment, and migration to examine the effects of a change in skill endowments on the wages, employment rates, and emigration rates of skilled and unskilled workers. We find that, depending on the elasticity of substitution...