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Technology Adoption and Skill Premium in the Knowledge Economy

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  • Sang-Chul Yoon

    (Dankook University)

Abstract

This paper introduces an indirect utility function with non-constant expenditure shares to analyze how technology adoption and skill premium are linked in the knowledge economy. The model shows that if and only if the technology is “general purpose technology†(GPT), technology adoption increases the skill premium in spite of the relative price decline of modern goods that are skill-intensive.

Suggested Citation

  • Sang-Chul Yoon, 2011. "Technology Adoption and Skill Premium in the Knowledge Economy," Korean Economic Review, Korean Economic Association, vol. 27, pages 231-251.
    • Handle: RePEc:kea:keappr:ker-20111231-27-2-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Technology Adoption; GPT; Skill Premium; Non-constant Expenditure Shares; Knowledge Economy;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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