Does foreign innovation affect domestic wage inequality?

• 成果类型: Article
• 署名作者: Butler, A; Dueker, M
• 署名单位: State University System of Florida; Florida International University; Federal Reserve System - USA
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00014-2
• 发表日期: 1999
• 页码: 61-89
• 关键词: innovation; wage differentials; foreign competition; patents

摘要

We use an open-economy product-cycle model of domestic high-tech/low-tech wages to motivate an empirical specification and test key model-implied restrictions. With data for 11 countries from an internationally comparable data set from the OECD, we conduct panel cointegration analysis that supports the hypothesis that foreign and domestic innovation rates affect domestic wage inequality by equal and opposite magnitudes. The estimated elasticities imply that a 10% increase in the domestic (foreign) innovation rate leads to a 3% increase (decrease) in the high-tech wage rate, relative to the low-tech wage. An atheoretic empirical regression that includes several of the same variables, but not the same specification as the product-cycle model, fails to yield significant results, in contrast to the specification derived from the product-cycle model. (C) 1999 Elsevier Science B.V. All rights reserved.