Global innovation races, offshoring and wage inequality

Impullitti, Giammario (2016) Global innovation races, offshoring and wage inequality. Review of International Economics, 24 (1). pp. 171-202. ISSN 1467-9396

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In the 1970s and 1980s the US position as the global technological leader was increasingly challenged by Japan and Europe. In those years the US skill premium and residual wage inequality increased substantially. This paper presents a two-region, quality-ladder growth model where the lagging economy progressively catches up with the leader. As the innovation gap closes, the advanced country experiences fiercer foreign technological competition that forces its firms to innovate more. Faster technical change increases the skill premium and residual inequality. Offshoring production and innovation plays a key role in shaping the link between international competition and inequality.

Item Type: Article
Additional Information: This is the peer reviewed version of the following article: Impullitti, G. (2016), Global Innovation Races, Offshoring and Wage Inequality. Review of International Economics, 24: 171–202, which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
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Depositing User: Eprints, Support
Date Deposited: 16 Jun 2016 08:59
Last Modified: 17 Sep 2016 16:47

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