IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v52y2020i59p6416-6431.html
   My bibliography  Save this article

A non-scale-directed technical change model with endogenous labor share

Author

Listed:
  • Óscar Afonso
  • Pedro G. Lima

Abstract

We extend a directed technical change (DTC) model without scale effects that allows labour share to vary over time. By decomposing the labour share by sectors, skilled and unskilled, and, in line with the empirical evidence, by considering a lower value in the skilled sector, we show that: (i) both the technological-knowledge bias per worker, the skill premium and the relative importance of the skilled sector continue to increase over time until the steady state, as in the baseline model; (ii) the labour share falls over time due to a combination of an increased importance and a lower labour share in the skilled sector; (iii) by considering endogenous labour supply, a relative increase in skilled labour also decreases the labour share during the transitional dynamics.

Suggested Citation

  • Óscar Afonso & Pedro G. Lima, 2020. "A non-scale-directed technical change model with endogenous labor share," Applied Economics, Taylor & Francis Journals, vol. 52(59), pages 6416-6431, December.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6416-6431
    DOI: 10.1080/00036846.2020.1795073
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2020.1795073
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2020.1795073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6416-6431. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.