Occupational Structure, Technological Innovation, And Reorganization of Production

Posted: 11 Jan 2001

See all articles by Victor Aguirregabiria

Victor Aguirregabiria

University of Toronto - Department of Economics

Cesar Alonso-Borrego

Universidad Carlos III de Madrid - Department of Economics

Abstract

Recent studies have found evidence for the complementarity between white-collar labor and technological capital. However, the estimated elasticities appear too small to explain the observed changes in labor occupational structure. Most of the increases in the share of white collar employment have been concentrated during recessions, but aggregate investment in technological capital seems procyclical. We examine several potential explanations for this puzzle using a panel of Spanish manufacturing firms that provides highly disaggregated information on employees by occupation. The empirical results show that the decision of adopting new technologies by new innovative firms is countercyclical, and has a much stronger effect on occupational structure than the accumulation of technological capital by old innovative firms.

JEL Classification: C33, J21, J44, L23

Suggested Citation

Aguirregabiria, Victor and Alonso-Borrego, Cesar, Occupational Structure, Technological Innovation, And Reorganization of Production. Available at SSRN: https://ssrn.com/abstract=254688

Victor Aguirregabiria

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S 3G7
Canada
4169784358 (Phone)

HOME PAGE: http://individual.utoronto.ca/vaguirre/

Cesar Alonso-Borrego (Contact Author)

Universidad Carlos III de Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain
+34 91 6249749 (Phone)
+34 91 6249849 (Fax)

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