Investment-specific Technological Change and Labor Composition: Evidence from the U.S. Manufacturing

Chun-Yu Ho

No WP2007-039, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics

Abstract: This paper examines the impact of investment-specific technological change on labor composition in U.S. manufacturing industries from 1974 to 1994. I show that investmentspecific technological change increases the relative demand of non-production workers to production workers, while TFP growth does not change labor composition. Moreover, I find that the demand of skilled labor is stronger in the durable goods sector whereas the deskilling effect is stronger in the non-durable goods sector.

Keywords: Employment Structure; Equipment Investment; Technological Change (search for similar items in EconPapers)
JEL-codes: J21 O33 (search for similar items in EconPapers)
Pages: 9pages
Date: 2007-09
New Economics Papers: this item is included in nep-bec and nep-lab
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Journal Article: Investment-specific technological change and labor composition: Evidence from the U.S. manufacturing (2008)
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