Recent studies of capital-skill complementarity suffer from several important empirical limitations and a theoretical framework that treats technological change as exogenous. This paper addresses some of these limitations using a new, detailed firm-level dataset on technology usage and labor composition. Based on two-stage estimation procedures, our results imply that technological change leads to a shift in labor composition and compensation in favor of white-collar workers.
- Advanced manufacturing technologies
- Skill-biased technological change
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Management of Technology and Innovation