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Endogenous skill biased technical change: Testing for demand pull effect

Author

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  • Francesco Bogliacino
  • Matteo Lucchese

Abstract

In this article we use the unification of Germany in 1990 to test the hypothesis that an increase in the supply of a production factor generates skill biased technical change. We test for this mechanism in the context of the model presented by Acemoglu and Autor (2011) that allows endogenous assignment of skills to tasks in the economy. We use cohorts of workers from comparable countries as a control group. After discussing the possible confounding factors, we conclude that this effect is absent. The differential pattern among the countries seems to be determined by labor market flexibilization and tax reform.

Suggested Citation

  • Francesco Bogliacino & Matteo Lucchese, 2015. "Endogenous skill biased technical change: Testing for demand pull effect," Econógrafos, Escuela de Economía 022951, Universidad Nacional de Colombia, FCE, CID.
    • Handle: RePEc:col:000176:022951
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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