Skill Polarization in Local Labour Markets under Share-Altering Technical Change

Alberto Dalmazzo (), Antonio Accetturo and Guido de Blasio

ERSA conference papers from European Regional Science Association

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.

Date: 2012-10
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Citations: View citations in EconPapers (2)

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https://www-sre.wu.ac.at/ersa/ersaconfs/ersa12/e120821aFinal00290.pdf (application/pdf)

Related works:
Journal Article: SKILL POLARIZATION IN LOCAL LABOR MARKETS UNDER SHARE-ALTERING TECHNICAL CHANGE (2014)
Working Paper: Skill Polarization in Local Labour Markets under Share-Altering Technical Change (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa12p288

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