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...

This paper argues that endogenous restructuring processes within firms towards non-routine tasks like autonomous problem-solving and other analytical activities, triggered by advances in information and communication technologies (ICT) and rising supply of educated workers, are associated with...

To explain the rise in the college wage premium in developed economies in the past decades, the present paper examines the effects of technological progress on workers effort incentives, which determine the effective labor supply. Five effort incentive effects of technological progress are...