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. 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13998.
Date of creation: May 2008
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-17 (All new papers)
- NEP-BEC-2008-05-17 (Business Economics)
- NEP-DEV-2008-05-17 (Development)
- NEP-DGE-2008-05-17 (Dynamic General Equilibrium)
- NEP-HRM-2008-05-17 (Human Capital & Human Resource Management)
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.:
- Robert E. Hall, 2001.
"The Stock Market and Capital Accumulation,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1185-1202, December.
- Xavier Gabaix & Augustin Landier, 2008.
"Why Has CEO Pay Increased So Much?,"
The Quarterly Journal of Economics,
MIT Press, vol. 123(1), pages 49-100, 02.
- Gabaix, Xavier & Landier, Augustin, 2008. "Why Has CEO Pay Increased So Much?," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Xavier Gabaix & Augustin Landier, 2006. "Why Has CEO Pay Increased So Much?," NBER Working Papers 12365, National Bureau of Economic Research, Inc.
- Xavier Gabaix & Augustin Landier, 2006. "Why Has CEO Pay Increased So Much?," 2006 Meeting Papers 518, Society for Economic Dynamics.
- Jovanovic, Boyan & Moffitt, Robert, 1988.
"An Estimate Of A Sectoral Model Of Labor Mobility,"
88-32, C.V. Starr Center for Applied Economics, New York University.
- Claudia Goldin & Lawrence F. Katz, 1999. "The Returns to Skill in the United States across the Twentieth Century," NBER Working Papers 7126, National Bureau of Economic Research, Inc.
- Mincer, Jacob & Higuchi, Yoshio, 1988. "Wage structures and labor turnover in the United States and Japan," Journal of the Japanese and International Economies, Elsevier, vol. 2(2), pages 97-133, June.
- Diamond, Peter A, 1982.
"Aggregate Demand Management in Search Equilibrium,"
Journal of Political Economy,
University of Chicago Press, vol. 90(5), pages 881-94, October.
- Andrew Atkeson & Patrick J. Kehoe, 2005.
"Modeling and Measuring Organization Capital,"
Journal of Political Economy,
University of Chicago Press, vol. 113(5), pages 1026-1053, October.
- Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
- Erik Brynjolfsson & Loren Hitt & Shinkyu Yang, 2002. "Intangible Assets: How the Interaction of Computers and Organizational Structure Affects Stock Market Valuations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 137-198.
- Prescott, Edward C & Visscher, Michael, 1980. "Organization Capital," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 446-61, June.
- Lippman, Steven A & McCall, John J, 1981. "Competitive Production and Increases in Risk," American Economic Review, American Economic Association, vol. 71(1), pages 207-11, March.
- Matthew F. Mitchell, 2000. "The Scope and Organization of Production: Firm Dynamics Over the Learning Curve," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 180-205, Spring.
- John Laitner & Dmitriy Stolyarov, 2003. "Technological Change and the Stock Market," American Economic Review, American Economic Association, vol. 93(4), pages 1240-1267, September.
- Ellen R. McGrattan & Edward C. Prescott, 2000.
"Is the stock market overvalued?,"
Federal Reserve Bank of Minneapolis, issue Fall, pages 20-40.
- Julien, B. & Kennes, J. & King, I., 1998.
"Bidding for Labour,"
dp98-03, Department of Economics, Simon Fraser University.
- Dagsvik, John & Jovanovic, Boyan & Shephard, Andrea, 1985.
"A Foundation for Three Popular Assumptions in Job-Matching Models,"
85-13, C.V. Starr Center for Applied Economics, New York University.
- Dagsvik, John & Jovanovic, Boyan & Shepard, Andrea, 1985. "A Foundation for Three Popular Assumptions in Job-matching Models," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 403-20, October.
- Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January.
- Lustig, Hanno & Syverson, Chad & Van Nieuwerburgh, Stijn, 2011.
"Technological change and the growing inequality in managerial compensation,"
Journal of Financial Economics,
Elsevier, vol. 99(3), pages 601-627, March.
- Hanno Lustig & Chad Syverson & Stijn Van Nieuwerburgh, 2009. "Technological Change and the Growing Inequality in Managerial Compensation," NBER Working Papers 14661, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.