EconPapers    
Economics at your fingertips  
 

Directed technological change with costly investment and complementarities, and the skill premium

Elena Sochirca (), Oscar Afonso and Pedro Gil ()
Additional contact information
Elena Sochirca: Faculdade de Economia, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: We develop an extended directed technological change model with R&D driven growth to analyze the growth rate, technological-knowledge bias, skill premium and industrial structure, assuming: (i) complementarities between intermediate goods in production, and (ii) internal costly investment. We find that complementarities directly affect equilibrium technological-knowledge bias, both elements influence equilibrium growth rate and neither affects skill premium and industrial structure. We also find that equilibrium skill premium is independent of relative labour endowments, being determined solely by workers' productivities, suggesting that the persisting increase in wage inequality observed in several developed countries over the last decades may have been due to increases in productivity advantages of skilled workers favoured by technological development.

Keywords: technological-knowledge bias; skill premium; complementarities; costly investment; vertical and horizontal R&D (search for similar items in EconPapers)
JEL-codes: J31 O31 O33 O41 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011-01
New Economics Papers: this item is included in nep-dge, nep-fdg and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.fep.up.pt/investigacao/workingpapers/11.01.26_wp401.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fep.up.pt/investigacao/workingpapers/11.01.26_wp401.pdf [301 Moved Permanently]--> https://www.fep.up.pt/investigacao/workingpapers/11.01.26_wp401.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:401

Access Statistics for this paper

More papers in FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-01-18
Handle: RePEc:por:fepwps:401