[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v38y2006i1p13-21.html
   My bibliography  Save this article

Skill-biased technological knowledge without scale effects

Author

Listed:
  • Oscar Afonso
Abstract
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.

Suggested Citation

  • Oscar Afonso, 2006. "Skill-biased technological knowledge without scale effects," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 13-21.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:13-21
    DOI: 10.1080/00036840500367625
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367625
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840500367625?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    2. Oded Galor & Omer Moav, 2000. "Ability-Biased Technological Transition, Wage Inequality, and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 469-497.
    3. Galor, Oded & Tsiddon, Daniel, 1997. "The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
    4. Kwan, Yum K. & Lai, Edwin L. -C., 2003. "Intellectual property rights protection and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 853-873, March.
    5. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 563-606.
    6. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-357, April.
    7. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    8. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    9. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1055-1089.
    10. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
    11. Elias Dinopoulos & Peter Thompson, 1999. "Scale effects in Schumpeterian models of economic growth," Journal of Evolutionary Economics, Springer, vol. 9(2), pages 157-185.
    12. Daron Acemoglu, 2003. "Patterns of Skill Premia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 199-230.
    13. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
    14. Paul Segerstrom & Elias Dinopoulos, 1999. "A Schumpeterian Model of Protection and Relative Wages," American Economic Review, American Economic Association, vol. 89(3), pages 450-472, June.
    15. Connolly, Michelle, 2003. "The dual nature of trade: measuring its impact on imitation and growth," Journal of Development Economics, Elsevier, vol. 72(1), pages 31-55, October.
    16. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    17. Kang-Shik Choi & Jinook Jeong, 2005. "Technological change and wage premium in a small open economy: the case of Korea," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 119-131.
    18. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    19. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    20. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
    21. Jose V. Rodriguez Mora & John Hassler, 2000. "Intelligence, Social Mobility, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 888-908, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sochirca, Elena & Gil, Pedro Mazeda & Afonso, Oscar, 2014. "Technology structure and skill structure: Costly investment and complementarity effects quantification," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 172-189.
    2. Oscar Afonso & Pedro Neves & Maria Thompson, 2014. "The skill premium and economic growth with costly investment, complementarities and international technological-knowledge diffusion," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(6), pages 878-905, September.
    3. Oscar Afonso, 2010. "Growth And Wage Inequality In A Scale‐Independent Model With R&D And Human‐Capital Accumulation," Manchester School, University of Manchester, vol. 78(2), pages 149-182, March.
    4. Alexandre Almeida & Oscar Afonso, 2010. "SBTC versus trade: testing skill-premia evidence across 25 OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 17(15), pages 1497-1501.
    5. Oscar Afonso, 2010. "Non‐Scale Effects Of International Technological‐Knowledge Diffusion On Southern Growth And Wages," The Japanese Economic Review, Japanese Economic Association, vol. 61(3), pages 341-366, September.
    6. Afonso, Oscar & Silva, Armando, 2012. "Non-scale endogenous growth effects of subsidies for exporters," Economic Modelling, Elsevier, vol. 29(4), pages 1248-1257.
    7. Nuno Torres & Óscar Afonso & Isabel Soares, 2017. "Manufacturing Skill-biased Wage Inequality, Natural Resources and Institutions," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1-29, November.
    8. Gil, Pedro Mazeda & Gabriel, Susana & Afonso, Oscar, 2020. "Is the skills mismatch important under skill-biased technological change and imperfect substitutability between immigrants and natives?," Economic Modelling, Elsevier, vol. 84(C), pages 38-54.
    9. Afonso, Oscar & Pinho, Mafalda, 2022. "How to reverse a negative asymmetric labor productivity shock in the European Union? A directed technical change analysis with fiscal and monetary policies," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 47-67.
    10. Óscar Afonso & Pedro G. Lima & Tiago Sequeira, 2022. "The effects of automation and lobbying in wage inequality: a directed technical change model with routine and non-routine tasks," Journal of Evolutionary Economics, Springer, vol. 32(5), pages 1467-1497, November.
    11. Oscar Afonso, 2023. "Losers and losses of COVID-19: a directed technical change analysis with fiscal and monetary policies," Economic Change and Restructuring, Springer, vol. 56(3), pages 1777-1821, June.
    12. Sochirca, Elena & Afonso, Óscar & Gil, Pedro Mazeda, 2013. "Technological-knowledge bias and the industrial structure under costly investment and complementarities," Economic Modelling, Elsevier, vol. 32(C), pages 440-451.
    13. Afonso, Óscar & Thompson, Maria, 2011. "Costly investment, complementarities and the skill premium," Economic Modelling, Elsevier, vol. 28(5), pages 2254-2262, September.
    14. Orachos Napasintuwong Artachinda, 2011. "Modeling Directions of Technical Change in Agricultural Sector," Working Papers 201101, Kasetsart University, Department of Agricultural and Resource Economics.
    15. Oscar Afonso & Tiago Sequeira & Derick Almeida, 2023. "Technological knowledge and wages: from skill premium to wage polarization," Journal of Economics, Springer, vol. 140(2), pages 93-119, October.
    16. Afonso, Oscar, 2023. "Inflation, technological-knowledge bias, and wages," Research in Economics, Elsevier, vol. 77(1), pages 91-103.
    17. Toshihiro Okada, 2012. "Wage Inequality, R&D Labor and R&D Productivity," Economics Bulletin, AccessEcon, vol. 32(4), pages 3036-3052.
    18. Afonso, Oscar & Leite, Rui, 2010. "Learning-by-doing, technology-adoption costs and wage inequality," Economic Modelling, Elsevier, vol. 27(5), pages 1069-1078, September.
    19. Afonso, Oscar & Alves, Rui Henrique & Vasconcelos, Paulo B., 2009. "Public deficits and economic growth," Economic Modelling, Elsevier, vol. 26(5), pages 1101-1109, September.
    20. Afonso, Oscar & Gil, Pedro Mazeda, 2013. "Effects of North–South trade on wage inequality and on human-capital accumulation," Economic Modelling, Elsevier, vol. 35(C), pages 481-492.
    21. Oscar Afonso & Ana Catarina Afonso, 2015. "Endogenous Growth Effects of Environmental Policies," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(5), pages 607-629, December.
    22. Óscar Afonso & Liliana Fonseca & Manuela Magalhães & Paulo B. Vasconcelos, 2021. "Directed technical change and environmental quality," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(1), pages 71-97, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Óscar Afonso & Álvaro Aguiar, 2005. "Price-Channel Effects of North-South Trade on the Direction of Technological Knowledge and Wage Inequality," FEP Working Papers 170, Universidade do Porto, Faculdade de Economia do Porto.
    2. Oscar Afonso, 2012. "Scale-independent North-South trade effects on the technological-knowledge bias and on wage inequality," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 181-207, April.
    3. Oscar Afonso, 2010. "Non‐Scale Effects Of International Technological‐Knowledge Diffusion On Southern Growth And Wages," The Japanese Economic Review, Japanese Economic Association, vol. 61(3), pages 341-366, September.
    4. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.
    5. Afonso, Oscar, 2008. "The impact of government intervention on wage inequality without scale effects," Economic Modelling, Elsevier, vol. 25(2), pages 351-362, March.
    6. Afonso, Oscar, 2013. "Diffusion and directed technological knowledge, human capital and wages," Economic Modelling, Elsevier, vol. 31(C), pages 370-382.
    7. Oscar Afonso, 2010. "Growth And Wage Inequality In A Scale‐Independent Model With R&D And Human‐Capital Accumulation," Manchester School, University of Manchester, vol. 78(2), pages 149-182, March.
    8. Oscar Afonso & AGUIAR, Alvaro, 2004. "Human Capital Accumulation and Wage Inequality with Scale-Independent North-South Technological Diffusion," DEGIT Conference Papers c009_026, DEGIT, Dynamics, Economic Growth, and International Trade.
    9. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    10. Gil, Pedro Mazeda & Gabriel, Susana & Afonso, Oscar, 2020. "Is the skills mismatch important under skill-biased technological change and imperfect substitutability between immigrants and natives?," Economic Modelling, Elsevier, vol. 84(C), pages 38-54.
    11. Oscar Afonso & Alvaro Aguiar, 2003. "Non-Scale Effects of North-South Trade on Economic Growth," DEGIT Conference Papers c008_013, DEGIT, Dynamics, Economic Growth, and International Trade.
    12. Acemoglu, Daron & Gancia, Gino & Zilibotti, Fabrizio, 2012. "Competing engines of growth: Innovation and standardization," Journal of Economic Theory, Elsevier, vol. 147(2), pages 570-601.3.
    13. Guido Cozzi & Silvia Galli, 2009. "Upstream Innovation Protection: Common Law Evolution and the Dynamics of Wage Inequality," Working Papers 2009_20, Business School - Economics, University of Glasgow.
    14. Óscar Afonso & Ana Rita Longras, 2022. "Corruption, institutional quality, and offshoring: How do they affect comparative advantage, inter‐country wage inequality, and economic growth?," Metroeconomica, Wiley Blackwell, vol. 73(4), pages 987-1020, November.
    15. Afonso, Oscar & Alves, Rui Henrique & Vasconcelos, Paulo B., 2009. "Public deficits and economic growth," Economic Modelling, Elsevier, vol. 26(5), pages 1101-1109, September.
    16. Óscar Afonso & Tiago Neves Sequeira & Marcelo Santos & Pedro Cunha Neves, 2023. "Global Firms, (de)unionization and Wage Inequality," Open Economies Review, Springer, vol. 34(5), pages 979-1013, November.
    17. Oscar Afonso & Manuela Magalhães, 2021. "The role of intellectual property rights in a directed technical change model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2142-2176, April.
    18. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    19. Shiyuan Pan & Heng-fu Zou & Tailong Li, 2010. "Patent Protection, Technological Change and Wage Inequality," CEMA Working Papers 437, China Economics and Management Academy, Central University of Finance and Economics.
    20. Afonso, Oscar, 2012. "The impact of public goods and services and public R&D on the non-observed economy size, wages inequality and growth," Economic Modelling, Elsevier, vol. 29(5), pages 1996-2004.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:38:y:2006:i:1:p:13-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.