Alesina, AlbertoBattisti, MicheleZeira, Joseph2017-11-062014Alesina, Alberto, Michele Battisti, and Joseph Zeira. 2014. Technology and Labor Regulations: Theory and Evidence. Working paper.http://nrs.harvard.edu/urn-3:HUL.InstRepos:34330171This 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.en-UStechnology choicecost of laborskill premiumlabor regulationsJournal Article2017-11-06