Endogenous Skill Biased Technical Change: Testing for Demand Pull Effect

Matteo Lucchese and Francesco Bogliacino

No 574, LIS Working papers from LIS Cross-National Data Center in Luxembourg

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

Keywords: Polarization; Skilled Biased Technological Change; Demand Pull (search for similar items in EconPapers)
JEL-codes: J31 O33 O52 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in GINI Discussion Paper 26, Amsterdam: AIAS, 2011

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Related works:
Journal Article: Endogenous skill biased technical change: testing for demand pull effect (2016)
Working Paper: Endogenous Skill Biased Technical Change: Testing For Demand Pull Effect (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:lis:liswps:574

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