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Skilled Labor-Augmenting Technical Progress in U. S. Manufacturing

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  • James A. Kahn
  • Jong-Soo Lim

Abstract

This paper examines the role of skilled labor in the growth of total factor productivity. We use panel data from manufacturing industries to assess the extent to which productivity growth in yearly cross sections is tied to industry shares of skilled labor inputs. We find robust evidence that productivity growth was increasingly concentrated in high-skill industries during a unique ten-year period beginning in the early 1970s. We do not find any positive association of productivity growth with new capital investment.

Suggested Citation

  • James A. Kahn & Jong-Soo Lim, 1998. "Skilled Labor-Augmenting Technical Progress in U. S. Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1281-1308.
    • Handle: RePEc:oup:qjecon:v:113:y:1998:i:4:p:1281-1308.
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    File URL: http://hdl.handle.net/10.1162/003355398555810
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    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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