Figure 3. Transitional dynamics
Share of G in high-tech
Skilled employment in efficiency units: h
Difficulty index in high-tech: X2
Innovation arrival rate in high-tech: I2
Unskilled employment in efficiency units: m
Difficulty index in low-tech: X1
0.111----------------------.----------------------.----------------------.----------------------
0.105---------------------■
0.1 ∙ -
0.0951----------------'----------------'----------------'----------------
0 100 200 300 400
Relative employment of unskilled workers: θ
Average skill premium
Note: the dotted lines represent the initial position of the economy
30
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