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Experience-biased technical change

Caselli, Francesco (2015) Experience-biased technical change. CFM discussion paper series (CFM-DP2015-17). Centre For Macroeconomics, London, UK.

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Abstract

The baby-boom cycle has caused very large swings in the relative supply of experienced workers (Örst a large decline, and then a large increase). Yet, the experience premium has failed to decline markedly in the period where the supply of experience has increased. I develop a methodology to estimate the increase in the relative demand for experience that is required to reconcile the behavor of prices and quantities, and show this to have been large - a phenomenon I dub experience-biased technical change. I conjecture that one of the drivers of experience-biased technical change is a decline in the relative demand for physical strength. In support this conjecture, I show that occupations requiring high or moderate physical strength have accounted for a declining share of weeks worked in the economy, with sedentary occupations experiencing a corresponding increase. I also conÖrm that older workers have a comparative disadvantage in occupations requiring physical strength.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.centreformacroeconomics.ac.uk/Home.aspx
Additional Information: © 2015 The Authors
Divisions: Centre for Macroeconomics
Subjects: H Social Sciences > HB Economic Theory
Sets: Research centres and groups > Centre for Macroeconomics
Date Deposited: 14 Dec 2017 10:52
Last Modified: 08 Aug 2019 23:26
URI: http://eprints.lse.ac.uk/id/eprint/86294

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