Hornstein, Andreas; Krusell, Per; Violante, Giovanni L. - In: Review of Economic Studies 74 (2007) 4, pp. 1089-1124
Does capital-embodied technological change play an important role in shaping labour-market outcomes? To address this question, we develop a model with vintage capital and search-matching frictions where irreversible investment in new vintages of capital creates heterogeneity in productivity...