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A note on the effects of skill-biased technical change on productivity flattening

Author

Listed:
  • Christian Hutter

    (Institute for Employment Research (IAB))

  • Enzo Weber

    (Institute for Employment Research (IAB))

Abstract

This paper examines the role of skill-biased technical change (SBTC) in the flattening of productivity growth and its effects on hours worked. We employ a structural macroeconometric analysis based on comprehensive micro data. The results show that 69 percent of the slowdown in productivity growth in Germany since the early 2000s can be explained by the flattening of SBTC. Furthermore, skill-biased technology shocks reduce hours, whereas skill-neutral technology shocks have a positive effect on hours in the long run.

Suggested Citation

  • Christian Hutter & Enzo Weber, 2019. "A note on the effects of skill-biased technical change on productivity flattening," Economics Bulletin, AccessEcon, vol. 39(2), pages 772-784.
    • Handle: RePEc:ebl:ecbull:eb-18-00855
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    References listed on IDEAS

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    Cited by:

    1. Christian Hutter & Enzo Weber, 2020. "Corona-Krise: die transformative Rezession [Corona Crisis: Transformative Recession]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(6), pages 429-431, June.
    2. Klinger, Sabine & Weber, Enzo, 2020. "GDP-employment decoupling in Germany," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 82-98.
    3. Sabine Klinger & Anvar Musayev & Jean-Marc Natal & Enzo Weber, 2019. "Immigration and Wage Dynamics in Germany," IMF Working Papers 2019/301, International Monetary Fund.

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    More about this item

    Keywords

    productivity; technology shocks; skill bias; hours worked; SVAR;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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