HOW POWERFUL ARE NETWORK EFFECTS? A SKILL-BIASED TECHNOLOGICAL CHANGE APPROACH

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Óscar Afonso (Author) FEP; Magalhaees, M (Author) Other

Journal

Title: Macroeconomic Dynamics

Vol. 24 No. 2

Pages: 882-919

ISSN: 1365-1005

Publisher: Cambridge University Press

Indexing

ISI Web of Knowledge - 14 Citations

Scopus - 13 Citations

Other information

Authenticus ID: P-00P-WCF

DOI: 10.1017/s1365100518000524

Abstract (EN): Even for the standard skill-biased technological change (SBTC) literature, the generic rise in the skill premium in the face of the relative increase in skilled workers since the 1980s seems a little puzzling. We develop a general equilibrium SBTC growth model that allows the dominance of either the price channel or the market-size channel mechanism through which network spillovers affect the technological-knowledge bias and, thus, the paths of intra-country wage inequality. The proposed mechanisms can accommodate facts not explained by the earlier literature.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 38