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How does technological innovation and diffusion affect inter-industry workers' mobility?

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Author Info
Magnani, Elisabetta

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Abstract

Does technological change amount to accumulation of general, and so transferable, human capital? To approach this question I rely on a theoretical framework in which the "technology distance" between industries reduces inter-industry transferability of workers' skill. Empirically, I use US panel data on individual intra-industry and inter-industry mobility decisions between 1982 and 1990, a period of rapid technological change in all manufacturing sectors, to estimate a mixed logit econometric specification that does not rely on the IIA assumption. I find support to the main idea that technological innovation and diffusion have different effects on workers' industrial mobility patterns. "Knowledge spillovers", differently from "rent spillovers", indeed boost the chances of workers' inter-industry mobility. Surprisingly, this is more consistently so in low-tech industries than in high-tech industries. Consistently with the expectations developed in the theoretical framework, in low-tech industries skilled workers respond more sharply to technology diffusion than unskilled workers.

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Publisher Info
Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 20 (2009)
Issue (Month): 1 (March)
Pages: 16-37
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Handle: RePEc:eee:streco:v:20:y:2009:i:1:p:16-37

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Web page: http://www.elsevier.com/locate/inca/525148

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Related research
Keywords: Workers' mobility Technology innovation and diffusion Skill transferability;

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This page was last updated on 2009-12-3.


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