All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Takeho Nakamura
 
''Wage inequality and welfare effects of domestic technological progress: a dual economy approach''
( 2007, Vol. 15 No.22 )
 
 
This paper shows that technological progress caused by a domestic high-tech firm always increases the skilled-unskilled wage inequality, using a two-sector, two-labor model. Also, we derive a sufficient condition for the technological progress to be effective in increasing domestic welfare. In the Cobb Douglas production function case, if the equilibrium relative wage is greater than a threshold level, domestic welfare unambiguously increases in response to the technological progress. Moreover, we also provide some policy implications of our results, in the context of developing countries.
 
 
Keywords:
JEL: O1 - Economic Development: General
O3 - Technological Change; Research and Development: General
 
Manuscript Received : Jul 30 2007 Manuscript Accepted : Nov 13 2007

  This abstract has been downloaded 458 times                The Full PDF of this paper has been downloaded 87714 times