This paper presents a general-equilibrium model of endogenous skilled-biased technological change and matching unemployment in a disaggregated economy. We simultaneously endogenise both the direction and pace of technological change as well as the unemployment rates. We show that an increase in...

We analyze a multi-sector growth model with directed technical change where man-made capital and exhaustible resources are essen tial for production. The relative profitability of factor-specific innovations endogenously determines whether technical progress will be capital- or...