GINI DP 26: Endogenous Skill Biased Technical Change: Testing for Demand Pull Effect

Francesco Bogliacino and Matteo Lucchese

GINI Discussion Papers from AIAS, Amsterdam Institute for Advanced Labour Studies

Abstract: In this article we use the unification of Germany in 1990 to test the hypothesis that an increase in the supply of a production factor generates skill biased technical change. We test for this mechanism in the context of the model presented by Acemoglu and Autor (2011) that allows endogenous assignment of skills to tasks in the economy. We use cohorts of workers from comparable countries as a control group. After discussing the possible confounding factors, we conclude that this effect is absent. The differential pattern among the countries seems to be determined by labor market flexibilization and tax reform.

Keywords: Skill Biased Technological Change; Polarization; Natural Experiment JEL codes: J31; O33; O52 (search for similar items in EconPapers)
Date: 2011-12
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Citations: View citations in EconPapers (1)

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