We analyze the effects of automation on the wages of high-skilled and low- skilled workers and thereby on the evolution of wage inequality. Our model explains the simultaneous presence of i) increasing per capita GDP, ii) de-clining real wages of low-skilled workers, and iii) an increasing...

This paper studies the implications for wage inequality of two distinct forms of globalisation, namely trade and foreign direct investment. I use German linked employer-employee data to (1) jointly estimate the exporter and the multinational wage premium and (2) to further distinguish between...

The distributional impact of globalization is of great academic interest. This paper traces the progression of theoretical trade models and their ability to explain the differential impact of off-shoring on skill premiums (i.e. skilled-unskilled wage dispersion) in the recipient developing...