Balleer, Almut and Van Rens, Thijs (2013) Skill-biased technological change and the business cycle. Review of Economics and Statistics, Volume 95 (Number 4). pp. 1222-1237. doi:10.1162/REST_a_00326 ISSN 0034-6535.

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Abstract

Over the past two decades, technological progress in the United States has been biased towards skilled labor. What does this imply for business cycles? We construct a quarterly skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long-run zero and sign restrictions. Hours fall in response to skill-biased technology shocks, indicating that part of the technology-induced fall in hours is due to a compositional shift in labor demand. Investment-specific technology shocks reduce the skill premium, indicating that capital and skill are not complementary in aggregate production.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Business cycles, Labor demand
Journal or Publication Title:	Review of Economics and Statistics
Publisher:	MIT Press
ISSN:	0034-6535
Official Date:	October 2013
Dates:	Date Event October 2013 Published 30 September 2013 Available 16 July 2012 Accepted 15 February 2010 Submitted
Volume:	Volume 95
Number:	Number 4
Page Range:	pp. 1222-1237
DOI:	10.1162/REST_a_00326
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Date of first compliant deposit:	23 December 2015
Date of first compliant Open Access:	23 December 2015

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