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Capital-skill complementarity and wage outcomes following technical change in a global model

Tyers, Rod; Yang, Yongzheng


We estimate the extent of factor bias in technical changes consistent with observed changes in skill premia. To control for the effects of expanded trade on wages we use a structural model with multiple regions and comparative static analysis. Two alternative biased technical-change stories emerge: skill enhancement when capital and skill are substitutes and capital enhancement when capital and skill are complements. These imply different underlying technical-changes processes and macroeconomic...[Show more]

CollectionsANU Research Publications
Date published: 2000
Type: Journal article
Source: Oxford Review of Economic Policy


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