This paper is related to the literature on the effect of foreign direct investment (FDI) on the labour market of host countries. Labour market literature has focused on the demand side of FDI; that is, increasing wage inequality by demanding more skilled workers or just increasing the overall...

In this paper, we provide an industry-level analysis of skill-biased technological change (SBTC) in Denmark over the last two decades. The analysis shows that SBTC has varied considerably across industries, and traditionally large Danish industries have experienced relatively less SBTC. This may...

If labor markets operated entirely frictionless, productivity premiums associated with different worker characteristics would equal the wage premiums earned by workers possessing those characteristics. Using matched employer-employee data from the manufacturing sector of three sub-Saharan...

How many immigrants with less than university education, for a given immigration quota, maximise economic output? The answer is zero in the canonical model of the labour market, where the marginal product of a university-educated immigrant is always higher. We build an alternative model in which...

This paper examines the empirical implications of technological changes for skill demand and wage inequality in Indonesia. According to the National Labor Force Survey of Indonesia, the share of educated workers and wage skill premium increased significantly over 2003-2009 for overall industry...

To examine how human capital accumulation influences both economic growth and income inequality, we carefully endogenize the demand and supply of skills. We explicitly introduce the costs and externalities in education, and examine how both relate to learning-by-doing and R&D intensity. In...

Research to date on labour market responses to EU integration has tended to concentrate on the labour markets of the “old” EU members. But what effect has the integration of trade had on wages in the new member states? The following article attempts to answer this question using an empirical...

This paper establishes a causal link between the emigration of skilled workers and firm performance in source countries. Using firm-level panel data from ten Eastern European countries, we show that the emigration of skilled workers lowers firm total factor productivity. We exploit time,...

In this paper we estimate a sectoral gravity model for trade within a heterogeneous trade bloc, the enlarged EU, comprised of a high-income group (wealthiest EU), a middle-income group (Greece, Portugal and Spain), and a low-income group (acceding Central and Eastern European countries). The...