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White-collar employment, inequality, and technological change

Volker Grossmann ()

Journal of Economics, 2005, vol. 86, issue 1, 119-142

Abstract: This paper develops a R&D-based growth model to examine the relationship between technological change, growth, walfare and the demand for skillintensive, analytical activities (e.g., product development, quality-control, and design of advertising campaigns). Results are consistent with evidence on rising employment shares of skilled, white-collar workers and increases in the skill premium in the US or UK. Moreover, accounting for a simultaneous decrease in overhead labor requirements (e.g., administrative staff), the analysis suggests that recent technology shifts have no systematic impact on firm sizes and on the economy’s rate of growth. This sheds some light into the “Solow-productivity paradox”. Copyright Springer-Verlag 2005

Keywords: analytical skills; skill premium; R&D-based growth; white-collar employment; O31; O33; J21; J31 (search for similar items in EconPapers)
Date: 2005
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Handle: RePEc:kap:jeczfn:v:86:y:2005:i:1:p:119-142