Market Size or Acceleration Effects; Comparing Hy pothese s to Explain Skill Biased Technical Change

Mark Sanders

Papers on Entrepreneurship, Growth and Public Policy from Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

Abstract: Skill-biased technical change has occupied empirical economists for much of the 90s. However, the empirical literature has not progressed much beyond observing a positive correlation between technology indicators and demand shifts. Two hypotheses on the root causes of skill biases in technical change, the acceleration effect and the market size effect, have been suggested in the literature. In this paper both are studied in a unified theoretical framework to derive the sufficient and necessary conditions for both hypotheses. Confronting them with the evidence the paper concludes that it favors the acceleration hypothesis but further empirical work needs to be done.

Keywords: Skill-Bias; Endogenous Growth; Product-Lifecycle (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 O15 O31 O33 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-01
New Economics Papers: this item is included in nep-dev
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