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White-collar employment, inequality, and technological change

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  • Volker Grossmann
Abstract
This paper develops a R&D-based growth model to examine the relationship between technological change, growth, walfare and the demand for skillintensive, analytical activities (e.g., product development, quality-control, and design of advertising campaigns). Results are consistent with evidence on rising employment shares of skilled, white-collar workers and increases in the skill premium in the US or UK. Moreover, accounting for a simultaneous decrease in overhead labor requirements (e.g., administrative staff), the analysis suggests that recent technology shifts have no systematic impact on firm sizes and on the economy’s rate of growth. This sheds some light into the “Solow-productivity paradox”. Copyright Springer-Verlag 2005
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Suggested Citation

  • Volker Grossmann, 2005. "White-collar employment, inequality, and technological change," Journal of Economics, Springer, vol. 10(1), pages 119-142, December.
    • Handle: RePEc:kap:jeczfn:v:10:y:2005:i:1:p:119-142
    DOI: 10.1007/BF03051802
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    1. Josef Falkinger & Volker Grossmann, 2003. "Workplaces in the Primary Economy and Wage Pressure in the Secondary Labor Market," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(3), pages 523-544, September.
    2. Nahuis, Richard & Smulders, Sjak, 2002. "The Skill Premium, Technological Change and Appropriability," Journal of Economic Growth, Springer, vol. 7(2), pages 137-156, June.
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    6. Jacobs, Bas & Nahuis, Richard, 2002. "A general purpose technology explains the Solow paradox and wage inequality," Economics Letters, Elsevier, vol. 74(2), pages 243-250, January.
    7. Volker Grossmann, 2000. "Skilled Labor Reallocation, Wage Inequality, and Unskilled Unemployment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(3), pages 473-473, September.
    8. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1245-1279.
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    20. Smulders, Sjak & van de Klundert, Theo, 1995. "Imperfect competition, concentration and growth with firm-specific R & D," European Economic Review, Elsevier, vol. 39(1), pages 139-160, January.
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    22. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages 390-415, June.
    23. Volker Grossmann, 2003. "Contest for Attention in a Quality-Ladder Model of Endogenous Growth," CESifo Working Paper Series 1003, CESifo.
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    1. Zhang, Dongyang & Wang, Cao & Miao, Shan & Deng, Lei, 2024. "The impact of firm's ESG performance on the skill premium: Evidence from China's green finance reform pilot zone," International Review of Financial Analysis, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    analytical skills; skill premium; R&D-based growth; white-collar employment; O31; O33; J21; J31;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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