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Technology Structure and Skill Structure: Costly Investment and Complementarity Effects Quantification

  • Elena Sochirca


    (Faculty of Economics, University of Porto, CEF.UP)

  • Pedro Mazeda Gil


    (Faculty of Economics, University of Porto, CEF.UP)

  • Oscar Afonso


    (Faculty of Economics, University of Porto, CEF.UP)

Based on an extended model of endogenous directed technical change and on cross-country data, we identify and quantify the long-run link between: (i) the technology structure (high- versus low-tech sectors) and the skill structure (high- versus low-skilled workers), by considering an explicit role for the (potential) gross complementarity between technological goods; (ii) the Tobin-q and the technology characteristics of the firms through their impact on economic growth. Our estimation and calibration exercise suggests the existence of a moderate degree of gross complementarity and of an elastic relationship between the Tobin-q and key technology parameters.

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Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 478.

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Length: 24 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:por:fepwps:478
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