Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/120515 
Year of Publication: 
2012
Series/Report no.: 
52nd Congress of the European Regional Science Association: "Regions in Motion - Breaking the Path", 21-25 August 2012, Bratislava, Slovakia
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
This paper considers the "share-altering" technical change hypothesis in a spatial general equilibrium model where individuals have different levels of skills. Building on a simple Cobb-Douglas production function, our model shows that the implementation of skill-biased technologies requires a sufficient proportion of highly educated individuals. Moreover, when technical progress is such to disproportionately replace middle-skill jobs, the local distribution of skill will exhibit "fat-tails", where the proportion of both highly skilled and low-skilled workers increases. These predictions are consistent with recent existing evidence.
Document Type: 
Conference Paper

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