Measuring the bias of technological change

Jordi Jaumandreu and Ulrich Doraszelski

No 10275, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Technological change can increase the productivity of the various factors of production in equal terms or it can be biased towards a specific factor. We develop an estimator for production functions when productivity is multi-dimensional. We directly assess the bias of technological change by measuring, at the level of the individual firm, how much of it is factor neutral and how much is labor augmenting. Applying our estimator to panel data from Spain, we find that technological change is indeed biased, with both its factor-neutral and its labor-augmenting component causing output to grow by about 2% per year.

Keywords: Biased technological change; Production function estimation; Productivity (search for similar items in EconPapers)
JEL-codes: D24 L60 O30 (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Measuring the Bias of Technological Change (2010)
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