NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Growth, Trade, and Inequality

Gene M. Grossman, Elhanan Helpman

NBER Working Paper No. 20502
Issued in September 2014
NBER Program(s):   EFG   ITI

We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods. Each research project generates a new variety of the differentiated product and a random technology for producing it. Technologies differ in complexity and productivity, and technological sophistication is complementary to worker ability. We study the co-determination of growth and income inequality in both the closed and open economy, as well as the spillover effects of policy and conditions in one country to outcomes in others.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20502

Users who downloaded this paper also downloaded* these:
Bound, Demirci, Khanna, and Turner w20505 Finishing Degrees and Finding Jobs: U.S. Higher Education and the Flow of Foreign IT Workers
Helpman, Itskhoki, Muendler, and Redding w17991 Trade and Inequality: From Theory to Estimation
Leibovici and Waugh w20498 International Trade and Intertemporal Substitution
La Porta and Shleifer w20205 Informality and Development
Martin, Nataraj, and Harrison w19942 In with the Big, Out with the Small: Removing Small-Scale Reservations in India
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us