Arbeitspapier

The labor market consequences of appropriate technology

Developing countries rely on technology created by developed countries. This paper demonstrates that such reliance increases wage inequality but leads to greater production in developing countries. I study a Brazilian innovation program that taxed the leasing of international technology to subsidize national innovation. I show that the program led firms to replace technology licensed from developed countries with in-house innovations, which led to a decline in both employment and the share of high-skilled workers. Using a model of directed technological change and technology transfer, I find that increasing the share of firms that patent in Brazil by 1 p.p. decreases the skilled wage premium by 0.02% and production by 0.2%.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. WP 2022-53

Klassifikation
Wirtschaft
Macroeconomic Analyses of Economic Development
Technological Change: Choices and Consequences; Diffusion Processes
Technological Change: Government Policy
Thema
appropriate technology
directed technological change
innovation

Ereignis
Geistige Schöpfung
(wer)
De Souza, Gustavo
Ereignis
Veröffentlichung
(wer)
Federal Reserve Bank of Chicago
(wo)
Chicago, IL
(wann)
2022

DOI
doi:10.21033/wp-2022-53
Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • De Souza, Gustavo
  • Federal Reserve Bank of Chicago

Entstanden

  • 2022

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