Technology and labor regulations: theory and evidence

Alberto Alesina; Michele Battisti; Joseph Zeira

doi:10.1007/s10887-017-9146-y

Technology and labor regulations: theory and evidence

Alberto Alesina, Michele Battisti, Joseph Zeira^*

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

38 Scopus citations

Abstract

This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technologically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.

Original language	English
Pages (from-to)	41-78
Number of pages	38
Journal	Journal of Economic Growth
Volume	23
Issue number	1
DOIs	https://doi.org/10.1007/s10887-017-9146-y
State	Published - 1 Mar 2018

Bibliographical note

Publisher Copyright:
© 2017, Springer Science+Business Media, LLC.

Keywords

Cost of labor
Labor regulations
Skill premium
Technology choice

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/s10887-017-9146-y

Cite this

@article{fb60b1903cfa47de939a7c3ad9078f6b,

title = "Technology and labor regulations: theory and evidence",

abstract = "This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technologically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.",

keywords = "Cost of labor, Labor regulations, Skill premium, Technology choice",

author = "Alberto Alesina and Michele Battisti and Joseph Zeira",

note = "Publisher Copyright: {\textcopyright} 2017, Springer Science+Business Media, LLC.",

year = "2018",

month = mar,

day = "1",

doi = "10.1007/s10887-017-9146-y",

language = "אנגלית",

volume = "23",

pages = "41--78",

journal = "Journal of Economic Growth",

issn = "1381-4338",

publisher = "Springer New York",

number = "1",

}

TY - JOUR

T1 - Technology and labor regulations

T2 - theory and evidence

AU - Alesina, Alberto

AU - Battisti, Michele

AU - Zeira, Joseph

PY - 2018/3/1

Y1 - 2018/3/1

N2 - This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technologically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.

AB - This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which bind more for low skilled workers, become less technologically advanced in their high skill sectors, but more technologically advanced in their low skill sectors. We then present data on capital-output ratios, on estimated productivity levels and on patent creation, which tend to support the predictions of our model.

KW - Cost of labor

KW - Labor regulations

KW - Skill premium

KW - Technology choice

UR - http://www.scopus.com/inward/record.url?scp=85028777389&partnerID=8YFLogxK

U2 - 10.1007/s10887-017-9146-y

DO - 10.1007/s10887-017-9146-y

M3 - ???researchoutput.researchoutputtypes.contributiontojournal.article???

AN - SCOPUS:85028777389

SN - 1381-4338

VL - 23

SP - 41

EP - 78

JO - Journal of Economic Growth

JF - Journal of Economic Growth

IS - 1

ER -

Technology and labor regulations: theory and evidence

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this