Productivity Differences

  title={Productivity Differences},
  author={Daron Acemoglu and Fabrizio Zilibotti},
  journal={NBER Working Paper Series},
Many technologies used by the LDCs are developed in the OECD economies, and as such are designed to make optimal use of the skills of these richer countries' workforces. Due to differences in the supply of skills, some of the tasks performed by skilled workers in the OECD economies will be carried out by unskilled workers in the LDCs. Since the technologies in these tasks are designed to be used by skilled workers, productivity in the LDCs will be low. Even when all countries have equal access… 
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