There are several implications one can derive from this model:[3]:169-170
Workers performing the same task earn higher wages in a high-skill firm than in a low-skill firm;
Wages will be more than proportionately higher in developed countries than would be assumed by measurements of skill levels;
Workers will consider human capital investments in light of similar investments by those around them;
This model magnifies the effect of local bottlenecks which also reduce the expected returns to skill;
O-ring effects across firms can create national low-production traps.
This model helps to explain brain drain and international economic disparity. As Kremer puts it, "If strategic complementarity is sufficiently strong, microeconomically identical nations or groups within nations could settle into equilibria with different levels of human capital".[1]