Skip to main content
Article thumbnail
Location of Repository

Capital-Skill Complementarity and Wage Outcomes following Technical Change in a Global Model*

By Rod Tyers and Yongzheng Yang

Abstract

Graeme Wells and an anonymous reviewer for constructive comments on earlier drafts. Capital-Skill Complementarity and Wage Outcomes following Technical Change in a Global Model We estimate the extent of factor bias in technical changes consistent with observed changes in skill premia. To control for the effects of expanded trade on wages we use a structural model with multiple regions and comparative static analysis. Two alternative biased technical change stories emerge: skill enhancement when capital and skill are substitutes and capital enhancement when capital and skill are complements. These imply different underlying technical change processes and macroeconomic behaviour in response to technical change shocks. Capital enhancement offers the more credible process, however, and is consistent with observed rises in the “equipment content ” of the capital stock. 1

Year: 2000
OAI identifier: oai:CiteSeerX.psu:10.1.1.195.2207
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://ecocomm.anu.edu.au/rese... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.