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Skill-biased technological knowledge without scale effects

Afonso, O

Applied economics, Jan 2006, Vol.38(1), pp.13-21 [Peer Reviewed Journal]

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  • Title:
    Skill-biased technological knowledge without scale effects
  • Author: Afonso, O
  • Subjects: Applied Economics ; Economic Growth ; Technological Change ; Research and Development ; Economic Dynamics ; Skills ; Knowledge ; Economics
  • Is Part Of: Applied economics, Jan 2006, Vol.38(1), pp.13-21
  • Description: In the skill-biased technological change literature, the technological-knowledge bias, which drives wage inequality, is determined by the market-size channel. Motivated by the literature on scale effects since Jones (1995a, b), the standard R&D technology is modified so that wage inequality results similarly from the technological-knowledge bias, which is instead induced by the price channel. Thus, by solving the transitional dynamics numerically, it is shown that the recent rise of the skill premium, which is highlighted by, e.g., Acemoglu (2002a), arises from the price-channel effect, complemented with a mechanism that can be called technological-knowledge-absorption effect. Reprinted by permission of Routledge, Taylor and Francis Ltd.
  • Language: English
  • Identifier: ISSN: 0003-6846 ; DOI: 10.1080/00036840500367625

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