Firm-level technological change and skill demand

Attila Lindner, Balazs Murakozy, Balazs Reizer and Ragnhild Schreiner

CEP Discussion Papers from Centre for Economic Performance, LSE

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)
Date: 2022-07-01
New Economics Papers: this item is included in nep-ino
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https://cep.lse.ac.uk/pubs/download/dp1857.pdf (application/pdf)

Related works:
Working Paper: Firm-level Technological Change and Skill Demand (2022)
Working Paper: Firm-level technological change and skill demand (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1857

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