Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality

Daron Acemoglu

Working papers from Massachusetts Institute of Technology (MIT), Department of Economics

Abstract: I consider an economy where skilled and unskilled workers use different technologies. The rate of improvement of each technology is determined by a profit-maximizing R&D sector. When there is a high proportion of skilled workers in the labor for ce, the market for skill complementary technologies is larger and more effort will be spent in upgrading the productivity of skilled workers.

Keywords: TECHNOLOGICAL CHANGE; EDUCATION; WAGES; SKILLS (search for similar items in EconPapers)
JEL-codes: J31 O14 O33 (search for similar items in EconPapers)
Pages: 39 pages
Date: 1997
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Citations: View citations in EconPapers (18)

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Journal Article: Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality (1998)
Working Paper: Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality (1997)
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