Skill-biased technological knowledge without scale effects

• Type: Article in International Scientific Journal
• Date: 2006

Authors

Óscar Afonso (Author) FEP

Journal

Title: Applied Economics

Vol. 38 No. 1

Pages: 13-21

ISSN: 0003-6846

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 43 Citations

ISI Web of Science

Scopus - 43 Citations

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-004-P5B

DOI: 10.1080/00036840500367625

Abstract (EN): 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.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 9