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The Effect of Professionalisation and the Demand for Social Status on the Adoption of New Technologies

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Author Info
Maria Rosaria CARILLO

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Abstract

Professionalisation has been a process which has profoundly influenced the societies of the most industrialised countries, since it entails a high position in the occupational hierarchy for its members. This has marked effects on the occupational choices of individuals, because the social prestige accorded to an occupation is an important part of the total reward accruing from it. This paper analyses the economic consequences of the phenomenon, concentrating in particular on the effects of technological innovation. The argument put forward is that professionalisation may hamper the diffusion of innovative technologies because it makes the choice of the new professions less attractive. Moreover, it renders the management of high-skilled workers costly for firms, since innovative firms must adopt new technique of human resource management. To the extent that these professions are complementary to the new technologies, their reduced supply and the high cost of their management may be a serious obstacle against the diffusion of technological innovation.

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Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

Volume (Year): 3 (2000)
Issue (Month): 5 (December)
Pages: 473-502
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Handle: RePEc:rie:review:y:2000:v:3:i:5

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References listed on IDEAS
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.:
  1. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  2. Fershtman, Chaim & Weiss, Yoram, 1993. "Social Status, Culture and Economic Performance," Economic Journal, Royal Economic Society, vol. 103(419), pages 946-59, July. [Downloadable!] (restricted)
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  3. Chaim Fershtman, 1993. "Social Status," Discussion Papers 1054, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  4. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August. [Downloadable!] (restricted)
  5. Acemoglu, Daron, 1994. "Search in the Labour Market, Incomplete Contracts and Growth," CEPR Discussion Papers 1026, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Howell, David R. & Wolff, Edward N., 1990. "Technical Change And The Demand For Skills By U.S. Industries," Working Papers 90-41, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
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  7. Snower, Dennis J., 1994. "The Low-Skill, Bad-Job Trap," CEPR Discussion Papers 999, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
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  10. Masters, Adrian M, 1998. "Efficiency of Investment in Human and Physical Capital in a Model of Bilateral Search and Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 477-94, May.
  11. Fershtman, Chaim & Murphy, Kevin M & Weiss, Yoram, 1996. "Social Status, Education, and Growth," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 108-32, February. [Downloadable!] (restricted)
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  12. Acemoglu, Daron, 2002. "Directed Technical Change," Review of Economic Studies, Blackwell Publishing, vol. 69(4), pages 781-809, October.
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  13. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December. [Downloadable!] (restricted)
  14. Matthews, Robin C O, 1991. "The Economics of Professional Ethics: Should the Professions Be More Like Business?," Economic Journal, Royal Economic Society, vol. 101(407), pages 737-50, July. [Downloadable!] (restricted)
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