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Economic Theory

, Volume 68, Issue 3, pp 609–641 | Cite as

Technology, skill, and growth in a global economy

  • Jaewon JungEmail author
Research Article

Abstract

This paper develops an endogenous growth model based on a Roy-like assignment model in which heterogeneous workers endogenously sort into different technologies/tasks according to their comparative advantage. By modeling explicit distinction between worker skills and tasks as well as incorporating task-specific technologies, we analyze in depth the technology-skill-growth and offshoring-growth links that are absent in traditional models of endogenous growth. We show that offshoring increases domestic aggregate productivity, welfare and growth due to technology-upgrading mechanism.

Keywords

Endogenous growth Technology-augmented skill distribution Worker/firm heterogeneity Offshoring Technology upgrading Skill upgrading 

JEL Classification

F43 F66 J24 O4 

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Research DivisionKorea Economic Research InstituteSeoulKorea
  2. 2.School of Business and EconomicsRWTH Aachen UniversityAachenGermany
  3. 3.THEMA, Université de Cergy-PontoiseCergyFrance

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