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,...

Dustmann/ Fitzenberger/ Schönberg/ Spitz-Oener (2014) praise the flexibility of German labour market institutions for the German turn-around from "Sick Man of Europe to Economic Superstar": The more decentralized, firm-specific wage-setting process since the mid-1990s increased wage inequality...

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...

Following Russia's February invasion of Ukraine and the imposition of sanctions by countries worldwide, Russian population faces a crisis with deep but differentiated consequences across socioeconomic groups. We examine the evolution of earnings and societal earnings gaps throughout Vladimir...

Since the reform and opening up, electricity consumption in China has grown rapidly. However, the energy and environmental problems partly caused by the power generation structure, which is dominated by coal-fired power generation, have deepened, affecting the orderly and sustainable development...

What can further market integration contribute to growth and employment? A series of hypothetical trade reform scenarios explores what countries at different levels of development can expect to gain from reforming tariffs, non-tariff barriers, trade facilitation and domestic support to...

Concerns over rising inequality have threatened to slow the process of trade liberalization in emerging economies, such as China and India. But even if trade liberalization raises inequality, these effects may be short lived and associated with important dynamic effects such as capital and skill...

There is evidence that better performing firms tend to enter international markets. Internationally active firms are larger, more productive, and pay higher wages than other firms in the same industry. Positive performance effects of engaging in international activity are found especially in...

We analyze how globalization has affected the sectoral anatomy of regional growth in Germany over the period 1978-2008. The aggregate German economy is characterized by a secular decline of manufacturing and a rise of modern service industries. This trend - also known as Petty's law - is not...