Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention
AbstractAbstract The economy under study is populated by two types of firms (innovative and not) and two types of workers (skilled and unskilled). The aim is to develop a model that confirms the existence of complementarities between innovative firms (R&D activities) and skilled workers (human capital) and traces corresponding optimal dynamics. Workers follow an imitative behavior to choose their action type (skilled or unskilled). As the share of innovative firms is large enough, then the share of skilled workers in equilibrium depends on the reviewing rate (of imitation) for those unskilled workers. The policy maker intervention is justified only for a certain time by reducing the threshold to reach the high-level equilibrium, but once the economy is in a path for a high-level equilibrium such an intervention may stop.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 22 (2011)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/525148
R&D firms Imitative behavior Skill-biased technical change Strategic complementarities;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eve Caroli & John Van Reenen, 2001.
"Skill-Biased Organizational Change? Evidence From A Panel Of British And French Establishments,"
The Quarterly Journal of Economics,
MIT Press, vol. 116(4), pages 1449-1492, November.
- Caroli, Eve & Van Reenen, John, 1999. "Skill biased organizational change? Evidence from a panel of British and French establishments," CEPREMAP Working Papers (Couverture Orange) 9917, CEPREMAP.
- Van Reenen, John & Caroli, Eve, 2001. "Skill-Biased Organizational Change? Evidence from a panel of British and French establishments," Economics Papers from University Paris Dauphine 123456789/10093, Paris Dauphine University.
- Oded Galor & Omer Moav, 2000.
"Ability-Biased Technological Transition, Wage Inequality, And Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 115(2), pages 469-497, May.
- Oded Galor & Omer Moav, 1998. "Ability Biased Technological Transition, Wage Inequality, and Economic Growth," Working Papers 98-14, Brown University, Department of Economics.
- Andreas Hornstein & Per Krussell & Giovanni L. Violante, 2004.
"The effects of technical change on labor market inequalities,"
04-08, Federal Reserve Bank of Richmond.
- Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370 Elsevier.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005. "The Effects of Technical Change on Labor Market Inequalities," Working Papers 89, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Hornstein, Andreas & Krusell, Per & Violante, Giovanni L, 2005. "The Effects of Technical Change on Labour Market Inequalities," CEPR Discussion Papers 5025, C.E.P.R. Discussion Papers.
- Michael T. Kiley, 1997.
"The supply of skilled labor and skill-based technological progress,"
Finance and Economics Discussion Series
1997-45, Board of Governors of the Federal Reserve System (U.S.).
- Kiley, Michael T, 1999. "The Supply of Skilled Labour and Skill-Biased Technological Progress," Economic Journal, Royal Economic Society, vol. 109(458), pages 708-24, October.
- Guellec, Dominique & Greenan, Nathalie & Caroli, Eve, 2001.
"Organizational Change and Skill Accumulation,"
Economics Papers from University Paris Dauphine
123456789/10092, Paris Dauphine University.
- Daron Acemoglu, 2002.
"Technical Change, Inequality, and the Labor Market,"
Journal of Economic Literature,
American Economic Association, vol. 40(1), pages 7-72, March.
- Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998.
"Computing Inequality: Have Computers Changed The Labor Market?,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(4), pages 1169-1213, November.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
- David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
- Elvio Accinelli & Silvia London & Lionello F. Punzo & Edgar J. Sanchez Carrera, 2010. "Dynamic Complementarities, Efficiency and Nash Equilibria for Populations of Firms and Workers," Journal of Economics and Econometrics, Economics and Econometrics Research Institute (EERI), Brussels, vol. 53(1), pages 90-110.
- Julian R. Betts, 1997. "The Skill Bias Of Technological Change In Canadian Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 146-150, February.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Acemoglu, D., 1997.
"Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality,"
97-14, Massachusetts Institute of Technology (MIT), Department of Economics.
- Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change And Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1055-1089, November.
- Acemoglu, Daron, 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," CEPR Discussion Papers 1707, C.E.P.R. Discussion Papers.
- Schlag, Karl H., 1996.
"Which one should I imitate?,"
Discussion Paper Serie B
365, University of Bonn, Germany.
- Ulrich Kaiser, 2000. "New Technologies And The Demand For Heterogeneous Labor: Firm-Level Evidence For The German Business-Related Service Sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(5), pages 465-486.
- Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
- Accinelli Gamba, Elvio & Sánchez Carrera, Edgar J., 2014. "Imitative Behavior and Evolutionary Dynamics for the Comparative Advantage of International Trade Theory," MPRA Paper 55209, University Library of Munich, Germany.
- Elvio Accinelli & Laura Policardo & Edgar J. Sánchez Carrera, 2012. "On the Dynamics and Effects of Corruption on Environmental Protection," Documentos de Trabajo (working papers) 1312, Department of Economics - dECON.
- Edgar Carrera, 2012. "Imitation and evolutionary stability of poverty traps," Journal of Bioeconomics, Springer, vol. 14(1), pages 1-20, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.