This paper presents a general-equilibrium model of Innovation, endogenous growth, and unemployment in a disaggregated economy. Unemployment is analyzed w ithin a dual labor market setting, where the labor market is consisting of a primary high-wage and a secondary low-wage sector. The...

We sketch a model that shows how skill-biased technological change may reverse the classic Balassa-Samuelson effect, leading to a negative relationship between productivity in the tradable sector and the real exchange rate. In a small open economy, export goods are produced with high-skilled...