An advanced economy relies on innovation activity for its further technology improvement. On the other hand a backward economy depends on both imitation from the world technology frontier and innovation activities - innovation being more skilled-intensive than imitation. In this paper I...

In-depth analysis of problems confronting both the U.S. budget and job market, while presenting a logical remedy for each dilemma. Problems addressed include the growing entitlement spending caused by increased lifespan since passing Medicare and Social Security, military spending on overseas...

This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of perceived well-being, the winners in...

This paper evaluates whether reforms associated with the New Public Management (NPM) doctrine led to a reduction in public sector expenditure and employees. Savings and downsizing the public sector were a major justification when the international movement of public sector reforms began in the...

Over the last three decades, outsourcing has had a big influence on the international division of labour. It is clear that it has been a major reason for the enormous build-up of production capabilities in the developing world, in particular in the export platforms of Asia. However, the...

The global innovation map is changing. Until a few years ago innovation activities were concentrated in the US, Europe and Japan. Not anymore. The rising powers of China, India and Brazil are encroaching on the innovation stronghold of the old powers. This report explores how deep the change...

Electronics industry has seen a tremendous industry shift from the developed countries to the emerging regions such as East and South Asia, particularly during the past four decades. And we can now see a huge industrial capability accumulation in Asia. This research note aims at, firstly,...

This paper analyzes optimal contracts in a linear hidden-action model with normally distributed returns possessing two moments that are governed jointly by two agents, who can observe each others' effort levels and draft enforceable side-contracts on chosen effort levels and realized returns....

Recent technological advances have made it economical to import some services that were not so previously, raising concerns about the future of U.S. jobs and workers' incomes. However, the current extent of service offshoring is very modest, both as a share of GDP and in terms of its...

We build a trade model with two countries located in different time zones, a monopolistically competitive sector in which production requires differentiated goods produced using day and night labor, and shift working disutility. Consumers choose between working at a day shift or a night shift...