Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefi t from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional confl ict that might turn into heterogeneous attitudes toward FDI infl ows in line with skill. In this paper ...

Advances in artificial intelligence and automation have the potential to be labor-saving increase inequality poverty around globe. They also give rise winner-takes-all dynamics that advantage highly skilled individuals countries are at forefront of technological progress. We analyze economic forces behind these developments delineate domestic policies mitigate adverse effects while leveraging g...

Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefi t from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional confl ict that might turn into heterogeneous attitudes toward FDI infl ows in line with skill. In this paper ...

South Africa simultaneously lost more than 890,000 jobs and increased the number of skilled workers from 1989 to 1999. We argue this is the consequence of well-documented acute apartheidera distortions which led to a current coordination failure where (i) firms are locked into a mostly skill-intensive technology where they have very little demand for semi-skilled and unskilled labor, and (ii) t...

In a high tax, high minimum wage labor market like France, payroll subsidies can reduce the minimum labor cost and expand employment opportunities for the low-skilled. Effects of these subsidies go beyond the directly affected. A particular concern is that high quality jobs may be replaced with lower quality ones, which hurts the employment opportunities of highly skilled workers and is costly ...

The scarcity of talent is a tremendous challenge for firms in the globalized world. This paper investigates the role of labor market imperfection in open economies for the usage of talent in the production process of firms. For this purpose, I set up a heterogeneous firms model, where production consists of a continuum of tasks that differ in complexity. Firms hire low-skilled and high-skilled ...

This article is devoted to the analysis of impact digital transformation processes on socio-economic development country. To study driving forces economy Russian Federation, a three-factor Cobb-Douglas function was constructed that modified considering factor influence digitalization GDP. Modern trends in field competition between cheap, but low-skilled labor, and expensive highly qualified det...

Abstract This article studies the implications of highly skilled labor international migration in a two-country dynamic stochastic general equilibrium model. The model considers three types workers: Science, Technology, Engineering, or Mathematics (STEM) workers, non-STEM college educated and non-college workers. Aggregate productivity each economy is function innovations, which can be produced...