DIRECTED STRUCTURAL CHANGE

2017 ◽  
Vol 23 (5) ◽  
pp. 1921-1958
Author(s):  
Robert F. Kane
Keyword(s):  
Structural Change ◽  
Technical Progress ◽  
Technical Change ◽  
Relative Wage ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Directed Technical Change ◽  
Unskilled Workers ◽  
The Stability ◽  
The Relationship

This paper extends the existing theories of directed technical change by allowing the factors of production, skilled, and unskilled workers, to be employed in both the skill-intensive and unskilled-intensive sectors. Consequently, the direction of technical progress and the sectoral allocation of factors are jointly determined. The feedback between technical progress and the allocation of factors leads to new results concerning structural change and directed technical change. An increase in the endowment of a factor leads to a dynamic reallocation of factors toward the sector that uses the factor intensively. The reallocation of factors also affects the stability properties of directed technical change. When the parameter conditions necessary for strong bias are satisfied, the interior regime (nonspecialization) is at most locally stable. More importantly, if the relative endowment of skilled labor becomes too high (low), the economy necessarily specializes in the production of skilled (unskilled)-labor-intensive goods. Last, the relationship between the relative endowment of skilled labor and the steady-state relative wage rate is not necessarily monotonic.

Skilled Labor, Unskilled Labor, and Experience Over Time

2016 ◽  
Author(s):  
Francesco Caselli
Keyword(s):  
Technical Change ◽  
The United States ◽  
Elasticity Of Substitution ◽  
Relative Wage ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Skill Bias ◽  
Unskilled Workers ◽  
Joint Behavior ◽  
Over Time

This chapter examines what the joint behavior of relative wage and relative supply reveal about the underlying changes in technology, with a focus on the United States. It distinguishes workers by two characteristics: skill and experience. It classifies the labor force into four kinds of workers: experienced skilled workers, inexperienced skilled workers, experienced unskilled workers, and inexperienced unskilled workers. The equation takes into account the quantities of unskilled inexperienced inputs, unskilled experienced inputs, skilled inexperienced inputs, and skilled experienced inputs, as well as the elasticity of substitution between unskilled inexperienced and unskilled experienced workers, and skilled inexperienced and skilled experienced ones. The results confirm many previous findings of a significant skill bias in technical change between 1960 and 2010, and also reveal an experience bias in technical change over roughly the same period, especially among skilled workers and since the 1980s.

scholarly journals The World Technology Frontier

2006 ◽  
Vol 96 (3) ◽  
pp. 499-522 ◽  
Author(s):  
Francesco Caselli ◽  
Wilbur John Coleman
Keyword(s):  
Skilled Labor ◽  
Simple Explanation ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Poor Countries ◽  
Aggregate Production Function ◽  
Unskilled Workers ◽  
Cross Country ◽  
Rich Countries ◽  
Lower Income Countries

We study cross-country differences in the aggregate production function when skilled and unskilled labor are imperfect substitutes. We find that there is a skill bias in cross-country technology differences. Higher-income countries use skilled labor more efficiently than lower-income countries, while they use unskilled labor relatively and, possibly, absolutely less efficiently. We also propose a simple explanation for our findings: rich countries, which are skilled-labor abundant, choose technologies that are best suited to skilled workers; poor countries, which are unskilled-labor abundant, choose technologies more appropriate to unskilled workers. We discuss alternative explanations, such as capital-skill complementarity and differences in schooling quality.

scholarly journals Structural change and non-constant biased technical change

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Edgar Cruz
Keyword(s):  
Twentieth Century ◽  
World War Ii ◽  
Structural Change ◽  
Technical Progress ◽  
Technical Change ◽  
Structural Transformations ◽  
World War ◽  
Tfp Growth ◽  
Sectoral Growth ◽  
The U.S

AbstractEmpirical evidence suggests that the differences in rates of technical progress across sectors are time-variant, implying that the bias in technological change is not constant. In this paper, we analyze the implications of this non-constant sectoral biased technical change for structural change and we assess whether this is an important factor behind structural transformations. To this end, we develop a multi-sectoral growth model where TFP growth rates across sectors are non-constant. We calibrate our model to match the development of the U.S. economy during the twentieth century. Our findings show that, by assuming non-constant biased technical change, a purely technological approach is able to replicate the sectoral transformations in the U.S. economy not only after but also prior to World War II.

scholarly journals Offshoring and Directed Technical Change

2015 ◽  
Vol 7 (3) ◽  
pp. 84-122 ◽  
Author(s):  
Daron Acemoglu ◽  
Gino Gancia ◽  
Fabrizio Zilibotti
Keyword(s):  
Wage Inequality ◽  
Technical Change ◽  
Profit Maximization ◽  
Real Wages ◽  
Industrial Countries ◽  
Directed Technical Change ◽  
Initial Cost ◽  
Ricardian Model ◽  
Unskilled Workers ◽  
Factor Bias

We study the implications of offshoring on innovation, technology, and wage inequality in a Ricardian model with directed technical change. Profit maximization determines both the extent of offshoring and the direction of technological progress. A fall in the offshoring cost induces technical change with an ambiguous factor bias. When the initial cost of offshoring is high, an increase in offshoring opportunities causes a fall in the real wages of unskilled workers in industrial countries, skill-biased technical change and rising skill premia. When the offshoring cost is sufficiently low, instead, offshoring induces technical change biased in favor of the unskilled workers. (JEL J24, J31, L24, O33)

scholarly journals Trade-Induced Structural Change and the Skill Premium

2019 ◽  
Vol 11 (3) ◽  
pp. 289-326 ◽  
Author(s):  
Javier Cravino ◽  
Sebastian Sotelo
Keyword(s):  
International Trade ◽  
Negative Impact ◽  
Real Income ◽  
Skill Premium ◽  
Relative Wage ◽  
Unskilled Labor ◽  
Manufacturing Employment ◽  
Goods And Services ◽  
Trade Model ◽  
Unskilled Workers

We study how international trade affects manufacturing employment and the relative wage of unskilled workers when goods and services are traded with different intensities. Manufacturing trade reduces manufacturing prices worldwide, which reduces manufacturing employment if manufactures and services are complements. International trade also raises real income, which reduces manufacturing employment if services are more income elastic than manufactures. Manufacturing production is unskilled-labor-intensive, so that these changes increase the skill premium. We incorporate these mechanisms in a quantitative trade model and show that reductions in trade costs had a negative impact on manufacturing employment and the relative wage of unskilled workers. (JEL F16, J24, J31, L60)

scholarly journals Energy Mix, Financial Development and Carbon Emissions in China: A Directed Technical Change Perspective

2021 ◽  
Author(s):  
shujie yao ◽  
Shuai Zhang
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Carbon Emissions ◽  
Technical Change ◽  
Policy Implication ◽  
Substitution Effect ◽  
Clean Energy ◽  
Income Effects ◽  
Directed Technical Change ◽  
The Relationship

Abstract Based on a two-sector (clean energy and dirty energy) model of directed technical change, we examine the relationship between carbon emissions, clean energy consumption and financial development in China using the ARDL method. Clean energy consumption reduces carbon emissions effectively but the effect of financial development is opposite, suggesting that financial development increases carbon emissions, contradicting the findings of many existing studies. Then, we decompose financial sector development on carbon emissions into two different effects: the substitution and income effects. The substitution effect reflects more dirty energy consumption as a result of directed technical change promoted by financial development, leading to more carbon emissions. In contrast, the income effect results in a decline of carbon emissions because financial development enables firms to use more clean energy. The empirical results indicate that the net effect of financial development has caused more carbon emissions. The policy implication is also discussed.JEL: Q01, Q42, Q56

An Experimental Investigation on Thermal Conductivity and Viscosity of Graphene doped CNTs /TiO2 Nanofluid

2020 ◽  
Vol 17 (3) ◽  
Author(s):  
A.M. Zetty Akhtar ◽  
M.M. Rahman ◽  
K. Kadirgama ◽  
M.A. Maleque
Keyword(s):  
Thermal Conductivity ◽  
Zeta Potential ◽  
Base Fluid ◽  
Minimum Quantity Lubrication ◽  
Cutting Fluid ◽  
Cutting Zone ◽  
Observation Method ◽  
The Stability ◽  
The Relationship ◽  
Zeta Potential Analysis

This paper presents the findings of the stability, thermal conductivity and viscosity of CNTs (doped with 10 wt% graphene)- TiO2 hybrid nanofluids under various concentrations. While the usage of cutting fluid in machining operation is necessary for removing the heat generated at the cutting zone, the excessive use of it could lead to environmental and health issue to the operators. Therefore, the minimum quantity lubrication (MQL) to replace the conventional flooding was introduced. The MQL method minimises the usage of cutting fluid as a step to achieve a cleaner environment and sustainable machining. However, the low thermal conductivity of the base fluid in the MQL system caused the insufficient removal of heat generated in the cutting zone. Addition of nanoparticles to the base fluid was then introduced to enhance the performance of cutting fluids. The ethylene glycol used as the base fluid, titanium dioxide (TiO2) and carbon nanotubes (CNTs) nanoparticle mixed to produce nanofluids with concentrations of 0.02 to 0.1 wt.% with an interval of 0.02 wt%. The mixing ratio of TiO2: CNTs was 90:10 and ratio of SDBS (surfactant): CNTs was 10:1. The stability of nanofluid checked using observation method and zeta potential analysis. The thermal conductivity and viscosity of suspension were measured at a temperature range between 30˚C to 70˚C (with increment of 10˚C) to determine the relationship between concentration and temperature on nanofluid’s thermal physical properties. Based on the results obtained, zeta potential value for nanofluid range from -50 to -70 mV indicates a good stability of the suspension. Thermal conductivity of nanofluid increases as an increase of temperature and enhancement ratio is within the range of 1.51 to 4.53 compared to the base fluid. Meanwhile, the viscosity of nanofluid shows decrements with an increase of the temperature remarks significant advantage in pumping power. The developed nanofluid in this study found to be stable with enhanced thermal conductivity and decrease in viscosity, which at once make it possible to be use as nanolubricant in machining operation.

Sign in / Sign up

Export Citation Format

Share Document