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Technology Structure and Skill Structure: Costly Investment and Complementarity Effects Quantification

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  • Elena Sochirca

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

  • Pedro Mazeda Gil

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

  • Oscar Afonso

    ()
    (Faculty of Economics, University of Porto, CEF.UP)

Abstract

Based on an extended model of endogenous directed technical change and on cross-country data, we identify and quantify the long-run link between: (i) the technology structure (high- versus low-tech sectors) and the skill structure (high- versus low-skilled workers), by considering an explicit role for the (potential) gross complementarity between technological goods; (ii) the Tobin-q and the technology characteristics of the firms through their impact on economic growth. Our estimation and calibration exercise suggests the existence of a moderate degree of gross complementarity and of an elastic relationship between the Tobin-q and key technology parameters.

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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 478.

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Length: 24 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:por:fepwps:478

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Keywords: high-tech; low-tech; skills; complementarity; Tobin-q; technological-knowledge bias;

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References

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Cited by:
  1. João Correia-da-Silva & Joana Pinho & Hélder Vasconcelos, 2013. "Cartel stability and profits under different reactions to entry in markets with growing demand," FEP Working Papers 487, Universidade do Porto, Faculdade de Economia do Porto.
  2. Ana P. Borges & Didier Laussel & João Correia-da-Silva, 2013. "Multidimensional screening with complementary activities: regulating a monopolist with unknown cost and unknown preference for empire-building," FEP Working Papers 486, Universidade do Porto, Faculdade de Economia do Porto.

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