Technological revolutions
Caselli, F.
(1999).
Technological revolutions.
American Economic Review,
89(1), 78-102.
https://doi.org/10.1257/aer.89.1.78
(1999).
Technological revolutions.
American Economic Review,
89(1), 78-102.
https://doi.org/10.1257/aer.89.1.78
In skill-biased (deskilling) technological revolutions, learning investments required by new machines are greater (smaller) than those required by preexisting machines. Skill-biased (deskilling) revolutions trigger reallocations of capital from slow- (fast-) to fast- (slow-) learning workers, thereby reducing the relative and absolute wages of the former. The model of skill-biased (deskilling) revolutions provides insight into developments since the mid-1970s (in the 1910s). The empirical work documents a large increase in the interindustry dispersion of capital-labor ratios since 1975. Changes in industry capital intensity are related to the skill composition of the labor force.