Aghion, Philippe 
ORCID: 0000-0002-9019-1677, Akcigit, Ufuk, Hyytinen, Ari and Toivanen, Otto
(2024)
A year older, a year wiser (and farther from frontier): invention rents and human capital depreciation.
Review of Economics and Statistics, 106 (4).
974 - 982.
ISSN 0034-6535
Abstract
We look at how the arrival of an invention affects wage returns and the probability of moving out of employment for white- and blue-collar co-workers of the inventor. First results suggest that older workers are hurt by the arrival of an invention. This negative effect disappears when we control for education and, in particular, for the time since obtaining the last formal degree, that is, distance to human capital frontier. If anything, this effect is slightly higher for non-STEM than STEM-educated co-workers. This result suggests that retraining programs could be helpful in making the process of creative destruction and economic growth more inclusive.
| Item Type: | Article |
|---|---|
| Official URL: | https://direct.mit.edu/rest |
| Additional Information: | © 2022 The President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 26 Jul 2024 12:54 |
| Last Modified: | 26 Jul 2024 12:54 |
| URI: | http://eprints.lse.ac.uk/id/eprint/124381 |
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