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The Role of Product Diversification in Skill-Biased Technological Change

Listed author(s):
  • Nam, Choong Hyun

    (Department of Economics, University of Warwick)

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    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.

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    File URL: https://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2015/twerp_1058_nam.pdf
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    Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 1058.

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    Date of creation: 2015
    Handle: RePEc:wrk:warwec:1058
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    8. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
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    15. Mathias Thoenig & Thierry Verdier, 2003. "A Theory of Defensive Skill-Biased Innovation and Globalization," American Economic Review, American Economic Association, vol. 93(3), pages 709-728, June.
    16. Christopher J. Nekarda & Valerie A. Ramey, 2013. "The Cyclical Behavior of the Price-Cost Markup," NBER Working Papers 19099, National Bureau of Economic Research, Inc.
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    19. Sanders Mark, 2002. "Product lifecycles and skill-biased technical change," Research Memorandum 014, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
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