Adjusting to a New Technology: Experience and Training
AbstractHow does the economy react to the arrival of a new major technology? The existing literature on general-purpose technologies (GPTs) has studied the role that mechanisms like secondary innovations, diffusion, and learning by firms play in the adjustment process. By contrast, we focus on a new mechanism: the interplay between technological change and two types of human capital-technology-specific experience and education. We show that technological change that requires more education and training, like computerization, necessarily produces an initial slowdown. On the other hand, technological change that lowers the training requirements, like the move from the artisan shop to the factory, can produce either a bust or a boom. We identify three key properties that determine the outcome: (1) the productivity of inexperienced workers, (2) the speed with which experience raises productivity, and (3) the level of general skills required to operate the new technology. Copyright 1999 by Kluwer Academic Publishers
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economic Growth.
Volume (Year): 4 (1999)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=102931
Other versions of this item:
- Helpman, E. & Rangel, A., 1998. "Adjusting to a New Technology: Experience and Training," Papers 07-98, Tel Aviv.
- Elhanan Helpman & Antonio Rangel, 1998. "Adjusting to a New Technology: Experience and Training," NBER Working Papers 6551, National Bureau of Economic Research, Inc.
- Elhanan Helpman & Antonio Rangel, 1998. "Adjusting to a New Technology: Experience and Training," Harvard Institute of Economic Research Working Papers 1833, Harvard - Institute of Economic Research.
- Helpman, Elhanan & Rangel, Antonio, 1998. "Adjusting to a New Technology: Experience and Training," CEPR Discussion Papers 1930, C.E.P.R. Discussion Papers.
- Elhanan Helpman & Antonio Rangel, 1998. "Adjusting to a New Technology: Experience and Training," Working Papers 99002, Stanford University, Department of Economics.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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.:
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24-96, Tel Aviv - the Sackler Institute of Economic Studies.
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