Non-biased technological change and growth

Abstract

This paper addresses the long run consequences of skills mismatches generated by innovation for those workers who are not involved in the process of innovation. Skills mismatches are interpreted as indicators of skills obsolescence. We impose the need of specific skills for successful implementation of new technologies in final production. While the work-force has to be compensated by the cost of implementing new technologies the compensation is limited by the productivity of the new design. If the cost of acquiring skills is high relative to the compensation then growth slows down irrespective of the amount of resources devoted to R&D.

Citation

Fernández, R.M. (2002), "Non-biased technological change and growth", de Grip, A., van Loo, J. and Mayhew, K. (Ed.) The Economics of Skills Obsolescence (Research in Labor Economics, Vol. 21), Emerald Group Publishing Limited, Leeds, pp. 175-193. https://doi.org/10.1016/S0147-9121(02)21010-9