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Firm-Level Technological Change and Skill Demand

Author

Listed:
  • Lindner, Attila

    (University College London)

  • Muraközy, Balázs

    (University of Liverpool)

  • Reizer, Balázs

    (ELTE - Centre for Economic and Regional Studies)

  • Schreiner, Ragnhild

    (University of Oslo)

Abstract

We quantify the contribution of firm-level technological change to skill demand and aggregate inequality in the presence of imperfect competition in the labor market. We show that skill-biased technological change increases both the firm-level skill ratio and the skill premium, while other shocks (e.g. firm-specific output demand shocks) cannot explain the increase in both outcomes. We exploit administrative data and a large survey measuring a broad class of firm-level technological changes from Hungary and Norway. We estimate that the aggregate college premium increases by 3.4% in Norway and by 4.9% in Hungary as a result of the skill bias in technological change.

Suggested Citation

  • Lindner, Attila & Muraközy, Balázs & Reizer, Balázs & Schreiner, Ragnhild, 2026. "Firm-Level Technological Change and Skill Demand," IZA Discussion Papers 18516, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18516
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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