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

Tyers, Rod; Yang, Yongzheng

Description

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]

dc.contributor.authorTyers, Rod
dc.contributor.authorYang, Yongzheng
dc.date.accessioned2015-12-13T23:18:27Z
dc.date.available2015-12-13T23:18:27Z
dc.identifier.issn0266-903X
dc.identifier.urihttp://hdl.handle.net/1885/90184
dc.description.abstractWe 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 behaviour in response to technical-change shocks. Capital enhancement offers the more credible process, however, and is consistent with observed rises in the 'equipment content' of the capital stock.
dc.publisherOxford University Press
dc.sourceOxford Review of Economic Policy
dc.subjectKeywords: labor market; skilled labor; technological change; wage
dc.titleCapital-skill complementarity and wage outcomes following technical change in a global model
dc.typeJournal article
local.description.notesImported from ARIES
local.description.refereedYes
local.identifier.citationvolume16
dc.date.issued2000
local.identifier.absfor140210 - International Economics and International Finance
local.identifier.ariespublicationMigratedxPub20480
local.type.statusPublished Version
local.contributor.affiliationTyers, Rod, College of Business and Economics, ANU
local.contributor.affiliationYang, Yongzheng, College of Asia and the Pacific, ANU
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage23
local.bibliographicCitation.lastpage41
dc.date.updated2015-12-12T08:56:49Z
local.identifier.scopusID2-s2.0-0034522677
CollectionsANU Research Publications

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