Skill Biased Structural Change

Francisco Buera, Joseph Kaboski and Richard Rogerson
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Francisco Buera: Federal Reserve Bank of Chicago

Working Papers from Princeton University. Economics Department.

Abstract: We document for a broad panel of advanced economies that increases in GDP per capita are associated with a shift in the composition of value added to sectors that are intensive in high-skill labor. It follows that further development in these economies leads to an increase in the relative demand for skilled labor. We develop a two-sector model of this process and use it to assess the contribution of this process of skill-biased structural change to the rise of the skill premium in the US, and a broad panel of advanced economies, over the period 1977 to 2005. We find that these compositional demands account for between 25 and 30% of the overall increase of the skill premium due to technical change.

Keywords: Skill-based Structural Change; Labor (search for similar items in EconPapers)
JEL-codes: E02 J20 (search for similar items in EconPapers)
Date: 2015-05
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Citations: View citations in EconPapers (8)

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https://www.nber.org/system/files/working_papers/w21165/w21165.pdf

Related works:
Journal Article: Skill-Biased Structural Change (2022)
Working Paper: Skill-biased structural change (2020)
Working Paper: Skill Biased Structural Change (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2015-6

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