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Skill Polarization in Local Labour Markets under Share-Altering Technical Change

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  • Alberto Dalmazzo

    ()

  • Antonio Accetturo
  • Guido de Blasio

    ()

Abstract

This paper considers the “share-altering†technical change hypothesis in a spatial general equilibrium model where individuals have different levels of skills. Building on a simple Cobb-Douglas production function, our model shows that the implementation of skill-biased technologies requires a sufficient proportion of highly educated individuals. Moreover, when technical progress is such to disproportionately replace middle-skill jobs, the local distribution of skill will exhibit “fat-tailsâ€, where the proportion of both highly skilled and low-skilled workers increases. These predictions are consistent with recent existing evidence.

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa12p288.

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Date of creation: Oct 2012
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Handle: RePEc:wiw:wiwrsa:ersa12p288

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Cited by:
  1. Antonio Accetturo, 2014. "Political selection in the skilled city," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 956, Bank of Italy, Economic Research and International Relations Area.

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