Paper #1079

Títol:

Skill-biased technological change and the business cycle

Autors:

Almut Balleer i Thijs van Rens

Data:

Març 2008 (Revisió: Maig 2012)

Resum:

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 restrictions. Hours fall in response to skill-biased technology shocks, indicating that at least part of the technology-induced fall in total hours is due to a compositional shift in labor demand. Skill-biased technology shocks have no effect on the relative price of investment, suggesting that capital and skill are not complementary in aggregate production.

Paraules clau:

Skill-biased technology, skill premium, VAR, long-run restrictions, capital-skill complementarity, business cycle

Codis JEL:

E24, E32, J24, J31

Àrea de Recerca:

Macroeconomia i Economia Internacional

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