Technological Transitions and Educational Policies
AbstractThis paper presents an out-of-equilibrium model to explain cross-country di erences in the capacity to absorb new skill-biased technologies. The usual mainstream viewpoint stressing the role of labour markets will be re-examined in a context characterized by a sequential structure of both the process of production and the skill formation, whose interaction brings about coordination failures harming the viabiity of the innovation process. In this light, educational policies play a crucial role in restoring the required coordination. The robust results of the simulations show that educational policies appear to be important both in rigid and in exible systems. In the former case, educational policies nanced by taxation allow the system to escape a low productivity nal equilibrium. In the latter, they contrast the nancial constraint associated to a large decrease in the unskilled wage. Altogether, a moderate degree of rigidity seems the most appropriate institutional environment to reach the targets of viability and of a full exploitation of the technological potential.
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Bibliographic InfoPaper provided by Dipartimento di Economia, Sapienza University of Rome in its series Working Papers - Dipartimento di Economia with number 9.
Length: 28 pages
Date of creation: 2010
Date of revision: 2010
Skill-Biased Technical Change; Labour Markets; Educational Policies; Out-of-Equilibrium Models;
Other versions of this item:
- Mario Amendola & Francesco Vona, 2012. "Coordinating the accumulation of physical and human capital in different institutional settings," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(7), pages 631-653, October.
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-EDU-2010-06-04 (Education)
- NEP-LAB-2010-06-04 (Labour Economics)
- NEP-MAC-2010-06-04 (Macroeconomics)
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- Fabrizio Patriarca & Francesco Vona, 2009.
"Structural Change and the Income Distribution: a Post-Keynesian disequilibrium model,"
Working Papers - Dipartimento di Economia
5, Dipartimento di Economia, Sapienza University of Rome, revised 2009.
- Patriarca, Fabrizio & Vona, Francesco, 2013. "Structural change and income distribution: An inverted-U relationship," Journal of Economic Dynamics and Control, Elsevier, vol. 37(8), pages 1641-1658.
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