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.

Alesina A, Battisti M, & Zeira J (2018). Technology and Labor Regulations: Theory and Evidence. JOURNAL OF ECONOMIC GROWTH(23), 41-78 [10.1007/s10887-017-9146-y].

Technology and Labor Regulations: Theory and Evidence

Battisti M;
2018

Abstract

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.
Settore SECS-P/01 - Economia Politica
Alesina A, Battisti M, & Zeira J (2018). Technology and Labor Regulations: Theory and Evidence. JOURNAL OF ECONOMIC GROWTH(23), 41-78 [10.1007/s10887-017-9146-y].
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10447/287880
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