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White-collar employment, inequality, and technological change

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  • Volker Grossmann

Abstract

This paper develops a R&D-based growth model to examine the relationship between technological change, growth, walfare and the demand for skillintensive, analytical activities (e.g., product development, quality-control, and design of advertising campaigns). Results are consistent with evidence on rising employment shares of skilled, white-collar workers and increases in the skill premium in the US or UK. Moreover, accounting for a simultaneous decrease in overhead labor requirements (e.g., administrative staff), the analysis suggests that recent technology shifts have no systematic impact on firm sizes and on the economy’s rate of growth. This sheds some light into the “Solow-productivity paradox”. Copyright Springer-Verlag 2005
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Suggested Citation

  • Volker Grossmann, 2005. "White-collar employment, inequality, and technological change," Journal of Economics, Springer, vol. 10(1), pages 119-142, December.
    • Handle: RePEc:kap:jeczfn:v:10:y:2005:i:1:p:119-142
    DOI: 10.1007/BF03051802
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    23. Volker Grossmann, 2003. "Contest for Attention in a Quality-Ladder Model of Endogenous Growth," CESifo Working Paper Series 1003, CESifo.
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    More about this item

    Keywords

    analytical skills; skill premium; R&D-based growth; white-collar employment; O31; O33; J21; J31;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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