acquire knowledge lead to opposite implicationson wage inequality and organization than reductions in communication costs.[...] …We present an equilibrium theory of the organization of work in an economywhere knowledge is an essential input in … designed to use and communicate their knowledge efficiently. Relativeto autarky, organization leads to larger cross …

The knowledge economy is nothing new. As Chandler’s (1977) classic study documents,improvements in communication …

globalizationincreases wage inequality among nonmanagers in the South, but not necessarilyin the North. We also study how globalization …