We prove that the change in welfare of a representative consumer is summarized by the current and expected future values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility while taking prices parametrically. This result justifies...

An increasingly influential technological-discontinuity paradigm suggests that IT-induced technological changes are rapidly raising productivity while making workers redundant. This paper explores the evidence for this view among the IT-using U.S. manufacturing industries. There is some limited...

Previous empirical literature has shown that technological change can be considered the main cause of the skill bias (increase in the number of highly skilled workers) exhibited by manufacturing employment in developed countries over the last decades. However, recent papers have also introduced...

Vintage human capital models imply that young workers will be the primary adopters and beneficiaries of new technologies. Because technological progress in general, and computers in particular, may be skill-biased and because human capital increases over the lifecycle, technological change may...

Labour economists have been increasingly interested in the impact of technological change upon employment and unemployment. However, the predominant focus of empirical studies has been on employment and unemployment stocks, whereas technological change is more likely to affect the flows of...

In this paper we use individual micro data on workers combined with industry and regional data to study the dynamics of the wage differential between skilled and unskilled workers in Italy in the period 1991-1996. Being different to previous empirical studies, our data allow us to explore in a...

We draw on a dynamical two-sector model and on a calibration exercise to study the impact of a skill-biased technological shock on the growth path and income distribution of a developing economy. The model builds on the theoretical framework developed by Silverberg and Verspagen (1995) and on...

Using a large, individual-level wage data set, we examine the impact of a major technological innovation – the steam engine – on skill demand and the wage structure in the merchant shipping industry. We find that the technical change created a new demand for skilled workers, the engineers,...

This paper investigates the link between health care expenditures and GDP for a sample of 21 OECD countries using recent developed panel cointegration techniques. In contrast to previous studies, the analysis accounts for the fact that health care expenditures are not only determined by income....

Despite indications that interpersonal interactions are important for understanding individual labor-market outcomes and have become more important over the last decades, there is little analysis by economists. This paper shows that interpersonal interactions are important determinants of...