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A Theory of Defensive Skill-Biased Innovation and Globalization. (2003)
| Venue: | American Economic Review, |
| Citations: | 51 - 0 self |
BibTeX
@ARTICLE{Thoenig03atheory,
author = {Mathias Thoenig and Thierry Verdier and Daron Acemoglu and Antoine D'autume and Roland Benabou and Pierre-Olivier Gourinchas and Gene Grossman and Sebastien Jean and Tomasso Naniccini and Gilles Saint-Paul and Jean-Marc Tallon and David Thesmar},
title = {A Theory of Defensive Skill-Biased Innovation and Globalization.},
journal = {American Economic Review,},
year = {2003},
pages = {709--728}
}
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Abstract
Abstract This paper considers a dynamic model of innovations in which firms can endogenously bias the direction of technological change. Both in a North-North and North-South context, we show that, when globalization triggers an increased threat of technological leapfrogging or imitation, firms tend to respond to that threat by biasing the direction of their innovations towards skilled labor-intensive technologies. We show that this process of defensive skill biased innovations generates an increase in wage inequalities in both regions. We then discuss suggestive empirical evidence of the existence of defensive skill biased technical change. JEL: F12, 033, J31.
