Skill-Biased Technological Change and the Business Cycle
2013 (English)In: Review of Economics and Statistics, ISSN 0034-6535, E-ISSN 1539-9142, Vol. 95, no 4, 1222-1237 p.Article in journal (Refereed) Published
Over the past two decades, technological progress in the United States has been biased towards skilled labor. What does this imply for business cycles? We construct a quarterly skill premium from the CPS and use it to identify skill-biased technology shocks in VAR with long-run zero and sign restrictions. Hours fall in response to skill-biased technology shocks, indicating that part of the technology-induced fall in hours is due to a compositional shift in labor demand. Investment-specific technology shocks reduce the skill premium indicating that capital and skill are not complementary in aggregate production.
Place, publisher, year, edition, pages
MIT Press, 2013. Vol. 95, no 4, 1222-1237 p.
Research subject Economics
IdentifiersURN: urn:nbn:se:su:diva-84084DOI: 10.1162/REST_a_00326ISI: 000325147100010ScopusID: 2-s2.0-84885980886OAI: oai:DiVA.org:su-84084DiVA: diva2:578323