Acemoglu, Daron; Gancia, Gino; Zilibotti, Fabrizio
(Cambridge, MA: Department of Economics, Massachusetts Institute of Technology, 2012-11-24)
To study the short-run and long-run implications on wage inequality, we introduce directed technical change into a Ricardian model of offshoring. A unique final good is produced by combining a skilled and an unskilled ...