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Skill-biased technological change and the business cycle

Balleer, Almut and van Rens, Thijs (2012) Skill-biased technological change and the business cycle. Review of Economics and Statistics. ISSN 0034-6535

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Abstract

Over the past two decades, technological progress in the United States has been biased towards skilled labor. What does this imply for business cycles? We construct a quarterly skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long-run zero and sign restrictions. Hours fall in response to skill-biased technology shocks, indicating that part of the technology-induced fall in hours is due to a compositional shift in labor demand. Investment-specific technology shocks reduce the skill premium, indicating that capital and skill are not complementary in aggregate production.

Item Type: Article
Official URL: http://www.mitpressjournals.org/loi/rest
Additional Information: © 2012 Massachusetts Institute of Technology Press
Subjects: H Social Sciences > HC Economic History and Conditions
Date Deposited: 01 Jul 2014 14:34
Last Modified: 01 Jul 2014 14:34
Projects: SEJ2005-01124, SEJ2006-02235, ECO2008-01665, 2009SGR-1157, ES/L500343/1
Funders: Spanish Ministry of Education and Science, Juan de la Cierva, Generalitat de Catalunya, Beatriu de Pinos, Barcelona GSE Research Network, Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/57362

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