Skill Bias Magnified: Identifying the Role of International Technology Diffusion

This paper studies whether innovations underlying skill-biased technical change diffuse internationally and thereby contribute to the increasing skill demand and inequality in other countries. Using a new empirical framework and sectoral data for a panel of 40 emerging and developed countries, 25 industries and the period from 1995 to 2007, the analysis shows that technology diffusion is statistically and economically important in explaining skill-biased technical change. The results hold for both advanced and emerging economies, as well as in several robustness checks.

Schulte, Patrick (2021), Skill Bias Magnified: Identifying the Role of International Technology Diffusion, Journal of International Economics 29 , 103467