Firm-level Technological Change and Skill Demand

Attila Lindner, Balazs Murakozy, Balazs Reizer and Ragnhild Schreiner

No 17421, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We quantify the contribution of  firm-level technological change to skill demand and aggregate inequality in the presence of imperfect competition in the labor market. We show that skill-biased technological change increases both the firm-level skill ratio and the skill premium, while other shocks (e.g.  firm-specific output demand shocks) cannot explain the increase in both outcomes. We exploit administrative data and a large survey measuring a broad class of firm-level technological changes from Hungary and Norway. We estimate that the aggregate college premium increases by 6.1% in Norway and by 13.8% in Hungary as a result of the skill bias in technological change.

Keywords: Skill-biased technological change; Innovation; Skill premiums; Imperfect competition (search for similar items in EconPapers)
JEL-codes: J24 J31 O30 O33 (search for similar items in EconPapers)
Date: 2022-07
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Working Paper: Firm-level technological change and skill demand (2022)
Working Paper: Firm-level technological change and skill demand (2022)
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