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Revisiting the world technology frontier: a directional distance function approach

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  • Jens J. Krüger

    (Darmstadt University of Technology)

Abstract

This paper revisits the finding of Caselli and Coleman (Amer Econ Rev 96:499–522, 2006) that poor countries are relatively more efficient in using unskilled labor whereas rich countries are more efficient in using skilled labor. The analysis is based on an approach using directional distance functions from nonparametric efficiency analysis which relies on very mild assumptions. We find that the central result of Caselli and Coleman is robust to using the nonparametric approach. The result is, however, sensitive to alternative definitions of skilled and unskilled labor, data sources and variations of the measurement approach.

Suggested Citation

  • Jens J. Krüger, 2017. "Revisiting the world technology frontier: a directional distance function approach," Journal of Economic Growth, Springer, vol. 22(1), pages 67-95, March.
    • Handle: RePEc:kap:jecgro:v:22:y:2017:i:1:d:10.1007_s10887-016-9136-5
    DOI: 10.1007/s10887-016-9136-5
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    Cited by:

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    3. Deng, Zhongqi & Jiang, Nan & Pang, Ruizhi, 2021. "Factor-analysis-based directional distance function: The case of New Zealand hospitals," Omega, Elsevier, vol. 98(C).
    4. Deng, Zhongqi & Song, Shunfeng & Jiang, Nan & Pang, Ruizhi, 2023. "Sustainable development in China? A nonparametric decomposition of economic growth," China Economic Review, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Biased technological change; Appropriate technology; Nonparametric directional distance functions;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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