This paper presents a novel stylized fact and analyzes its contribution to the skill bias of technical change in U.S. manufacturing. The share of skilled labor embedded in intermediate inputs correlates strongly with the skill share employed in final production. This finding points toward an...

In this study, we explore the effects of a change in unskilled labor in China on the direction of innovation in the US by incorporating production offshoring into a North-South model of directed technical change. We find that intellectual property rights (IPRs) and offshoring are different ways...

In this study, we analyze the effects of labor shortage in China on the direction of innovation in the US by incorporating production offshoring into a North-South model of directed technical change. We �find that if offshoring is present (absent) in equilibrium, then a decrease (an increase)...

L’objectif de cet article est de déterminer les effets de la diffusion des innovations technologiques sur la demande de la main d’oeuvre par qualification des industries pour le cas d’un pays en développement (en l’occurrence la Tunisie) en utilisant des données de panel sur la...

This paper analyzes the mechanisms, other than market size, through which international trade of intermediate goods incorporating state-of-the-art technological knowledge affects accumulation of human capital and wage inequality in the North and South. Under North-South technological diffusion,...

This paper develops an endogenous growth model with technological knowledge directed towards high- versus low-skilled labour, augmented with North–South international trade of intermediate goods and with human-capital accumulation, to analyse how trade affects wage inequality and the...

Sectoral data features (i) changing relative expenditures of different sectors, (ii) non-constancy in relative prices and (iii) long-run trends in relative TFP growth rates across sectors. We provide a tractable theory of industry directed technical change, which is able to reconcile these...

The share of knowledge-intensive services and products in total output and demand and in the production of advanced, but also less advanced or emerging economies, has steadily increased over time and especially so for the knowledge-intensive services. This ‘quaternization’ of the economies...

In the course of growth, sectoral data features (i) changing relative expenditures of different sectors, (ii) non-constancy in the growth rates of relative prices and (iii) shifting relative TFP growth rates of sectors. This paper presents a simple model of directed technical change, which is...

This volume was prepared by Erik Hornung while he was working in the Department Human Capital and Innovation of the Ifo Institute. It was completed in December 2012 and accepted as a doctoral thesis by the Economics Department of the University of Munich (LMU). The thesis consists of four core...