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Skill-Biased Share-Altering Technical Change in Spatial General Equilibrium

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  • Alberto Dalmazzo

    ()

  • Antonio Accetturo
  • Guido de Blasio

Abstract

The paper consider the skill-biased “share-altering†technical change hypothesis in a spatial general equilibrium model where skilled and unskilled individual may exhibit different preferences for local amenities. A main novelty –both for labour and urban economics- is that, under this hypothesis, skill-biased technical change can be readily represented by simple Cobb-Douglas production functions, rather than CES technologies. We then analyse the local labour markets equilibrium, where the adoption of new technologies may require an adequate proportion of skilled workers. Keywords: skill-biased technical change, share-altering technologies, local labour markets. JEL Classification Numbers: O33, R12, R23, J31.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p83.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p83

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  1. Roback, Jennifer, 1988. "Wages, Rents, and Amenities: Differences among Workers and Regions," Economic Inquiry, Western Economic Association International, vol. 26(1), pages 23-41, January.
  2. John J. Seater & Pietro Peretto, 2007. "Factor-Eliminating Technical Change," 2007 Meeting Papers 272, Society for Economic Dynamics.
  3. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," NBER Working Papers 14373, National Bureau of Economic Research, Inc.
  4. Christopher R. Berry & Edward L. Glaeser, 2005. "The Divergence of Human Capital Levels Across Cities," NBER Working Papers 11617, National Bureau of Economic Research, Inc.
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