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The Role of Product Diversification in Skill-Biased Technological Change

Author

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  • Nam, Choong Hyun

    (Department of Economics, University of Warwick)

Abstract

Since the 1980s, kabour demand has shifted towards more educated workers in the US. The most common explanation is that the productivity of skilled workers has risen to the unskilled, but it is not east to explain why aggregate labour productivity was stagnant during the 1980s. This paper suggests an alternative story: introducing new goods involves a fixed labour input, which is biased towards white-collar workers. Hence the transition from Ford-style mass production towards more a diversified one has shifted labour demand toward white-collar workers.

Suggested Citation

  • Nam, Choong Hyun, 2015. "The Role of Product Diversification in Skill-Biased Technological Change," The Warwick Economics Research Paper Series (TWERPS) 1058, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1058
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2015/twerp_1058_nam.pdf
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    References listed on IDEAS

    as
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    6. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
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    More about this item

    Keywords

    Skill demand; product innovation; inequality; productivity;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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