Specific Capital and Technological Variety
AbstractGrowth of technological variety offers more scope for the division of labor. And when a division of labor requires some specific training, the technological specificity of human capital grows, and, with it, probably the firm specificity of that capital grows. We build a simple model that captures this observation. The model implies that a rising specialization of human and physical capital raises the rents in the average match between a firm and its human and physical capital. We document that in the last 40 years the firm’s share of those rents has also grown, and we use the model to explain why this shift may have taken place.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Human Capital.
Volume (Year): 2 (2008)
Issue (Month): 2 ()
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Web page: http://www.journals.uchicago.edu/JHC/
Other versions of this item:
- O0 - Economic Development, Technological Change, and Growth - - General
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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