Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58276
Authors: 
Balleer, Almut
Van Rens, Thijs
Year of Publication: 
2012
Series/Report no.: 
Kiel Working Paper 1775
Abstract: 
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 a VAR with long-run restrictions. Hours fall in response to skill-biased technology shocks, indicating that at least part of the technology-induced fall in total 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.
Subjects: 
skill-biased technology
skill premium
VAR
long-run restrictions
capital-skill complementarity
business cycle
JEL: 
E24
E32
J24
J31
Document Type: 
Working Paper

Files in This Item:
File
Size
349.01 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.