Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2002
Defensive innovations in developed countries can explain the empirical phenomenon that openness towards trade with less …-by-step innovations as introduced by Aghion et al. (2001), we show that defensive innovations can result from private incentives. In … particular, minimum wages can induce defensive innovations which then redistribute income away from workers. Suggestive empirical …