Technological Change in Quantities

Jan Eeckhout, Philipp Kircher () and Cristina Lafuente
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Philipp Kircher: Université catholique de Louvain, LIDAM/CORE, Belgium

No 2024017, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Skill-biased technological change has long been linked to rising wage inequality. New technologies also allow firms to expand their scope of their operation. We formalize such quantity-biased technological change and calibrate the model to German matched employeremployee data. The calibration attributes substantial changes in the firm size distribution and in wages to this channel. Quantity-biased technological change spreads out the firm size distribution with a moderating influence on wage inequality within blue and white collar occupations, yet it increases inequality between these occupations. The quantity-bias component in the blue collar occupations alone moderates inequality within and between occupations.

Keywords: Quantity-bias; scale-bias; technological change; skill-bias; firm size distribution; wage inequality (search for similar items in EconPapers)
JEL-codes: J23 J32 O33 (search for similar items in EconPapers)
Pages: 43
Date: 2024-06-01
New Economics Papers: this item is included in nep-bec and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2024017

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