Globalisation, co-operation costs and wage inequalities

Anderson, Edward, Tang, Paul J. G. and Wood, Adrian (2006) Globalisation, co-operation costs and wage inequalities. Oxford Economic Papers, 58 (4). pp. 569-595. ISSN 1464-3812

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Abstract

The falling cost of international business travel and communication motivates highly-skilled workers who live in developed countries to spend more of their time co-operating with less-skilled workers in developing countries. This tends to narrow the gap between developed and developing countries in the wages of less-skilled workers, but to widen the wage gap within developed countries between highly-skilled and less-skilled workers. The paper formalizes this mechanism and tests it on data for the United States and developing countries. The two effects on wage inequalities of greater co-operation of highly-skilled workers with workers in developing countries both seem quantitatively important.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > School of International Development
Depositing User: Edward Anderson
Date Deposited: 14 Apr 2011 09:33
Last Modified: 23 Mar 2020 15:17
URI: https://ueaeprints.uea.ac.uk/id/eprint/29275
DOI: 10.1093/oep/gpl011

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