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 technolog- ically 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.
|Numero di pagine||38|
|Rivista||Journal of Economic Growth|
|Stato di pubblicazione||Published - 2018|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics