Technology and Labor Regulations: Theory and Evidence
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Alesina, Alberto, Michele Battisti, and Joseph Zeira. 2014. Technology and Labor Regulations: Theory and Evidence. Working paper.Abstract
This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which are binding for low skilled workers, become less technologically advanced in their high-skilled sectors, and more technologically advanced in their low-skilled sectors. We then present data on capital output ratios, on estimated productivity levels and on patent creation, which support the predictions of our model.Other Sources
http://scholar.harvard.edu/alesina/publications/technology-and-labor-regulations-theory-and-evidencehttp://www.nber.org/papers/w20841
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