Publication Type
Working Paper
Version
publishedVersion
Publication Date
2-2003
Abstract
In our general equilibrium model, the variety of specialized service links affects international production fragmentation in manufacturing. Decreases in cost of education or fixed cost of service links raise the relative supply of skilled workers, increase service specialization, and decrease the price of aggregate services. Consequently, the market for service- and skill-intensive component manufacturing enlarges, raising relative demand for skilled workers. Empirically, endogenous change in international outsourcing rather than skill-biased technological progress is the main reason for a modest decline in wage gap despite the rapid rise in relative supply of skilled workers in Singapore from 1978 to 2000.
Keywords
Production Fragmentation, Service Links, Wage Inequality, Singapore, Technological Progress
Discipline
Asian Studies | Labor Economics
Research Areas
Applied Microeconomics
Volume
04-2003
First Page
1
Last Page
36
Publisher
SMU Economics and Statistics Working Paper Series, No. 04-2003
City or Country
Singapore
Citation
HO, Kong Weng and HOON, Hian Teck.
Service Links and Wage Inequality. (2003). 04-2003, 1-36.
Available at: https://ink.library.smu.edu.sg/soe_research/771
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.