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Hollowing out and slowing growth: The role of process innovations
Review of Economic Dynamics ( IF 2.3 ) Pub Date : 2021-07-08 , DOI: 10.1016/j.red.2021.06.004
Wenbo Zhu 1
Affiliation  

I develop an endogenous growth model with skill acquisition, which can simultaneously account for labour market polarization and a slow down in labour productivity growth. When a new technology enters the economy, it requires implementation by high-skilled workers. Over time, process innovation makes the technology more user-friendly so that lower skilled workers can also operate it. Process innovation contributes to growth by increasing the range of technologies that a lower skilled worker can operate. It also reallocates labour demand for different skill-groups and thereby affects the income distribution. Skill can be acquired through a costly learning activity and workers face different learning costs. I calibrate the model to match the European labour market in 2000 and 2014 respectively. I show that when the rate of process innovation decreases, labour productivity growth slows down and wage and employment become polarized.



中文翻译:

空心化和增长放缓:流程创新的作用

我开发了一个具有技能获取的内生增长模型,该模型可以同时解释劳动力市场两极分化和劳动生产率增长放缓。当一项新技术进入经济时,它需要高技能工人的实施。随着时间的推移,工艺创新使该技术对用户更加友好,因此技能较低的工人也可以操作它。流程创新通过增加低技能工人可以操作的技术范围来促进增长。它还重新分配不同技能组的劳动力需求,从而影响收入分配。技能可以通过昂贵的学习活动获得,工人面临不同的学习成本。我校准模型以分别匹配 2000 年和 2014 年的欧洲劳动力市场。

更新日期:2021-07-08
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