This paper studies the effects of the diffusion of a General Purpose Technology (GPT), that spreads first within the developed country of its origin (North), and then to a developing country (South). We use a general equilibrium model of growth, where each final good is produced by one of two...

This paper analyzes the mechanisms, other than market size, through which international trade of intermediate goods incorporating state-of-the-art technological knowledge affects accumulation of human capital and wage inequality in the North and South. Under North-South technological diffusion,...

Where is the productivity growth from the IT revolution? Why did the skill premium rise sharply in the early eighties? Were these phenomena related? This paper examines these questions in a general equilibrium model of growth. Technological progress in firms is driven by research aimed at...

By connecting the North–South diffusion and the bias of non-scale technological knowledge and by considering endogenous human capital, we relate the technological-knowledge diffusion with levels, inter-country gaps, growth rates, wage-inequality paths and specialisation patterns. Inter-country...

This paper develops an endogenous growth model with technological knowledge directed towards high- versus low-skilled labour, augmented with North–South international trade of intermediate goods and with human-capital accumulation, to analyse how trade affects wage inequality and the...

This paper develops a general equilibrium endogenous growth model that emphasizes the mechanisms, other than market size, through which trade-induced North-South technological knowledge diffusion influences the direction of technological progress and, thus, the path of intra and inter-country...

We propose a new framework to analyse the wage premium behaviour. Building on Acemoglu and Zilibotti (2001), we introduce physical capital and two assumptions: (i) internal costly investment in both capital and R&D; (ii) complementarities between capital goods in production. We find that, for...

In the dominant literature, the technological-knowledge bias that drives wage inequality is determined by the market-size channel. We develop an endogenous growth model with two technologies in which: a specific quality of labour, low or high-skilled, is combined with a specific set of...

We develop a knowledge-based growth model to address the issues of directed technological change, wage inequality and economic growth, in which skilled workers are used both in innovation and production. Since skill-biased technological change may lead to a decrease in the average productivity...

We examine the behaviour of the skill premium in a two-country general equilibrium growth model assuming (i) technological-knowledge diffusion; (ii) internal costly investment in both physical capital and R&D; and (iii) complementarities between intermediate goods in production. We find that...