We study the role of increased outsourcing of production to a low wage country on relative wages across countries and innovation incentives. In particular, we examine the following causal forces behind an increase in the extent of international outsourcing: 1) a reduction in the resource...

How do firms respond to technological advances that facilitate the automation of tasks? Which tasks will they automate, and what types of worker will be replaced as a result? We present a model that distinguishes between a task's engineering complexity and its training requirements. When two...

Job polarization the rise in employment shares of high and low skill jobs at the expense of middle skill jobs occurred in the US not just recently, but also in the late nineteenth and early twentieth centuries. We argue that in each case polarization resulted from increased automation, and...

We use a large sample of German workers to analyze the effect of low-wage competition with China and Eastern Europe (the East) on the wage structure within German manufacturing industries. Utilizing the method by Abowd et al. (1999), we decompose wages into firm and worker components. We find...

This study's main objective is assessing the effects of innovation on firms' employment growth. Further, we aimed to examine the quality of jobs in terms of skills and wages. By applying a structural modeling ap- proach, four types of innovation were considered-namely, product, process,...

At the turn of the millennium three frequently cited potential causes of new challenges for wage policy in Germany are revisited in this study: skilled- biased technological progress, the increasing international integration of labor and product markets, and the monetary integration of the EMU....

The US labour market has experienced a remarkable polarization in the 1980s and 1990s. Moreover, recent empirical work has documented a sharp increase in the wealth to income ratio in that period. Contemporary to these inequality trends, the US faced a fast technological catch-up as European...

Based on observations that high-wage industries in 1980 experienced more evident job polarization between 1980 and 2009, we hypothesize that the persistent structure of interindustry wage differentials leads to heterogeneity in job polarization across industries; as the relative price of ICT...

The purpose of this paper is to investigate the mechanisms underlying the relationship between automation and labor market polarization. To do so, we build an agent-based model (ABM) in which workers, heterogeneous in nature and level of skills, interact endogenously on a decentralized labor...

We investigate how workers adjust to firms' investments into new digital technologies, including artificial intelligence, augmented reality, or 3D printing. For this, we collected novel data that links survey information on firms' technology adoption to administrative social security data. We...