Cozzi, GuidoGuidoCozziImpullitti, GiammarioGiammarioImpullitti2023-04-132023-04-132016https://www.alexandria.unisg.ch/handle/20.500.14171/10496810.1162/REST_a_00551In the 1980s and 1990s, the US labour market experiences a remarkable polarization along with fast technological catch-up, as Europe and Japan drastically improve their global innovation performance. Is foreign technological convergence an important source of employment and wage polarization? To answer these questions, we set up a Schumpeterian growth model with two asymmetric countries, heterogeneous workers, endogenous skill formation and occupational choice. A calibrated version of the model shows that foreign technological catching-up accounts for a non-negligible part of polarization in the US. Moreover, the model delivers predictions on the US wealth to income ratio consistent with empirical evidence.enwage polarizationheterogeneous workerswealth-income ratioendogenous technical changeinternational technology competitionpersonal Service sector.journal article