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 | |
| State | Published - 1 Mar 2018 |
Bibliographical note
Publisher Copyright:© 2017, Springer Science+Business Media, LLC.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 4 Quality Education -
SDG 8 Decent Work and Economic Growth
Keywords
- Cost of labor
- Labor regulations
- Skill premium
- Technology choice
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