The Structure Of Firm R&D, The Factor Intensity Of Production, And Skill Bias
This paper explores the effect of research and development (R&D) and capital on factor intensity and skill bias in a sample of manufacturing plants. Firm and industry R&D as well as plant level capital increase the factor intensity of labor over materials. In contrast, skill bias originates in portions of capital and R&D. Equipment capital and firm R&D in the same product as a plant are consistently skill biased, while structures are biased against skill. Furthermore, general firm and industry R&D increase investment in equipment but not structures. This shows that the skill bias of R&D occurs through two distinct channels. First, firm R&D specific to the product increases the relative demand for skilled labor directly and in the short run through the cost function. Second, general firm and industry R&D exert an additional skill bias by favoring equipment over structures in the long run, demonstrating the broader compass of the skill bias of R&D over time. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 81 (1999)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:81:y:1999:i:3:p:499-510. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.