EconPapers    
Economics at your fingertips  
 

Coordinating the accumulation of physical and human capital in different institutional settings

Mario Amendola and Francesco Vona ()

Economics of Innovation and New Technology, 2012, vol. 21, issue 7, 631-653

Abstract: This paper presents an out-of-equilibrium model to explain differences in the capacity to absorb new skill-biased technologies. The usual mainstream viewpoint focusing only on the role of labour markets will be re-examined in a context characterized by a sequential structure of both the processes of production and the skill formation, whose interaction brings about coordination failures harming the viability of the innovation process. Our out-of-equilibrium approach allows us to consider the more general interplay between stylized labour and product market characteristics, on the one hand, and educational policies, on the other hand. The robust results of the simulations show that educational policies appear to be important in restoring the required coordination both in rigid and in flexible systems, but for different reasons. In the former case, educational policies financed by taxation allow the system to escape a low-productivity final equilibrium. In the latter case, they contrast the financial constraint associated with a large decrease in the unskilled wage. Altogether, a moderate degree of rigidity seems to be the most appropriate institutional environment to reach the targets of viability and of a full exploitation of the technological potential.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/10438599.2011.633831 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Technological Transitions and Educational Policies (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:ecinnt:v:21:y:2012:i:7:p:631-653

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GEIN20

Access Statistics for this article

Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli

More articles in Economics of Innovation and New Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2019-06-04
Handle: RePEc:taf:ecinnt:v:21:y:2012:i:7:p:631-653