Abstract This paper offers a theoretical model of the adoption and diffusion of computers at work to analyze between-group and within-group wage inequality, inspired by the empirical observation that the composition of the group of workers using a computer changes over time and that the timing of the rise in between-group and within-group wage inequality is different. The model conjectures that...

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This paper examines the effect of trade openness on the productivity of skilled and unskilled labor in a group of 36 developing countries using panel data and fixed effect approach. We have developed and utilized an empirical model that readily lends itself to testing the hypothesis posed. Our results support the hypothesis that trade openness has a positive and significant impact on labor prod...

Rapid automation in manufacturing has raised pressing questions public and policy discourse regarding the effects of labor-eliminating technical progress an industry. We address implications a technology adopted for factor price changes, skilled–unskilled wage gap, trade policies intended to protect workers. Using otherwise traditional multisector general equilibrium model, we derive conditions...

T his study investigated the effect of international labor migration on Iran’s economy using a neo-classical growth model with the assumption of labor heterogeneity within the framework of dynamic stochastic general equilibrium model. After solving the model, the obtained equations were linearized and different values were assigned to the parameters according to Iran’s economy inform...

In this paper, we present the process of rebalancing the line at motorcycle-assembly plant. The company found it necessary to rebalance its line, since it needs to increase production in the spring and summer months. The main characteristics of the problem are as follows: (i) the company hires temporary staff, who need more time to carry out their tasks than permanent workers; (ii) there must a...

This paper develops and evaluates a novel mechanism through which imports of unskilled intermediates (offshoring) increase wages of both skilled and unskilled workers by inducing skill-biased technology adoption and innovation in developed countries. Data for a panel of manufacturing industries in the United States over 1974-2005, strongly support the technology channel with a doubling of offsh...

Efficiency in a Matching Model with Heterogeneous Agents: Too Many Good or Bad Jobs? This paper analyses the efficiency of the equilibrium allocation in a matching model with two types of workers and jobs. The basic assumption is that high-skill workers can perform both skilled and unskilled jobs, while low-skill workers can only perform unskilled jobs. Our first result shows that the equilibri...

In this paper, we construct a simple model based on heterogeneity in workers’ productivity and homogeneity in their working schedules. This simple model can generate unemployment, even if wages adjust instantaneously, firms are perfectly competitive, and firms can perfectly observe workers’ productivity and effort. In our model, it is optimal for low-skilled workers to be unemployed because, on...