The impact of office machinery and computer capital on the demand for heterogeneous labor
AbstractThis paper analyzes the impact of office machinery and computer capital (OCM) on the demand for heterogeneous labor. A system of static and dynamic factor demand equations based on a variant of the generalized Box-Cox cost function nesting the translog, the generalized Leontief and the normalized quadratic functional form is derived and estimated. OCM capital and general capital are treated as quasi-fixed factors. Using panel data on 35 German industries, we find that OCM capital is complementary to all skill levels. For the manufacturing sector, the increase in OCM capital and general capital has accounted for at least 60 percent and 9 percent of the expanding employment of university graduates. In nonmanufacturing industries, we find that an increase in general capital tends to reduce unskilled workers. Wage effects and substitution effects between different types of labor and material inputs play a minor role in explaining employment changes of highly skilled workers and medium-skilled workers but these effects are more important in explaining the demand for unskilled workers. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 01-66.
Date of creation: 2001
Date of revision:
skill-biased technological change; capital-skill complementarity;
Other versions of this item:
- Falk, Martin & Koebel, Bertrand M., 2004. "The impact of office machinery, and computer capital on the demand for heterogeneous labour," Labour Economics, Elsevier, vol. 11(1), pages 99-117, February.
- Falk, Martin & Koebel, Bertrand, 2003. "The Impact of Office Machinery and Computer Capital on the Demand for Heterogeneous Labour," IZA Discussion Papers 873, Institute for the Study of Labor (IZA).
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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