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

Author

Listed:
  • 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.

Suggested Citation

  • Elena Sochirca & Pedro Mazeda Gil & Oscar Afonso, 2013. "Technology Structure and Skill Structure: Costly Investment and Complementarity Effects Quantification," FEP Working Papers 478, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:478
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    References listed on IDEAS

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    2. 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.

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    More about this item

    Keywords

    high-tech; low-tech; skills; complementarity; Tobin-q; technological-knowledge bias;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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