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The effects of technological change on schooling and training human capital

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  • Xueda Song

Abstract

This study investigates the differential effects of technological change on general human capital acquired through schooling and technology-specific human capital acquired through training based on a life-cycle human capital investment model. Using data from the National Longitudinal Survey of Youth 79 (1987--2003), I find that for both high-ability and low-ability individuals, the net effect of technological change on training human capital is obsolescence, whereas that on schooling human capital is an increase in productivity in spite of the obsolescence. This finding is consistent with the view that individuals with more schooling may enjoy an advantage under rapid technological change over those with less schooling. I also find that technological change exerts differential impacts on individuals with different ability levels, which provides support for the skill-biased technical change theory.

Suggested Citation

  • Xueda Song, 2013. "The effects of technological change on schooling and training human capital," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(1), pages 23-45, January.
    • Handle: RePEc:taf:ecinnt:v:22:y:2013:i:1:p:23-45
    DOI: 10.1080/10438599.2012.698844
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    1. Jacob Mincer, 1989. "Human Capital Responses to Technological Change in the Labor Market," NBER Working Papers 3207, National Bureau of Economic Research, Inc.
    2. Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
    3. Riddell, W. Craig & Song, Xueda, 2011. "Education, Job Search and Re-employment Outcomes among the Unemployed," IZA Discussion Papers 6134, Institute of Labor Economics (IZA).
    4. Weinberg, Bruce A., 2004. "Experience and Technology Adoption," IZA Discussion Papers 1051, Institute of Labor Economics (IZA).
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    1. N Renuga Nagarajan & Mineko Wada & Mei Lan Fang & Andrew Sixsmith, 2019. "Defining organizational contributions to sustaining an ageing workforce: a bibliometric review," European Journal of Ageing, Springer, vol. 16(3), pages 337-361, September.

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