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Investment-specific technological change and labor composition: Evidence from the U.S. manufacturing

Chun-Yu Ho ()

Economics Letters, 2008, vol. 99, issue 3, 526-529

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 investment-specific 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.

Date: 2008
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Working Paper: Investment-specific Technological Change and Labor Composition: Evidence from the U.S. Manufacturing (2007)
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