Wages and Knowledge Transfer
Rydex Working Paper
19 Pages Posted: 15 Jul 2003 Last revised: 16 Aug 2013
Date Written: October 23, 2008
With the advancement of medical sciences, knowledge transfer will become easier and cheaper. It may alter the way we traditionally think about relative wages. In this paper, we formalize this process with a labor model in which the cost of knowledge transfer and preferences over occupation are parameters. We find that in the extreme of zero cost of knowledge transfer, "high skill" occupations might be paid less than "low skill" occupations in equilibrium.
Keywords: Wages, knowledge transfer, employment
JEL Classification: J3
Suggested Citation: Suggested Citation