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Technology structure and skill structure: Costly investment and complementarity effects quantification

  • Sochirca, Elena
  • Gil, Pedro Mazeda
  • Afonso, Oscar

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- vs. low-tech sectors) and the skill structure (high- vs. low-skilled workers), by considering an explicit role for the (potential) 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 complementarity and of an elastic relationship between the Tobin-q and key technology parameters.

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Article provided by Elsevier in its journal Journal of Macroeconomics.

Volume (Year): 40 (2014)
Issue (Month): C ()
Pages: 172-189

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Handle: RePEc:eee:jmacro:v:40:y:2014:i:c:p:172-189
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