DMCA
Skill-Biased Technological Change and the Business Cycle (2011)
BibTeX
@MISC{Balleer11skill-biasedtechnological,
author = {Almut Balleer and Thijs Van Rens and Jel E and Juan-carlos Conesa and Marty Eichenbaum and Jonas Fisher and Gino Gancia and Per Krusell},
title = {Skill-Biased Technological Change and the Business Cycle},
year = {2011}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
Over the past two decades, technological progress in the United States has been biased towards skilled labor. What does this imply for business cycles? We construct a quarterly skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long-run restrictions. Hours fall in response to skill-biased technology shocks, indicating that at least part of the technology-induced fall in total hours is due to a compositional shift in labor demand. Skill-biased technology shocks have no effect on the relative price of investment, suggesting that capital and skill are not complementary in aggregate production.
