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Technology and labor regulations

Author: Alberto Alesina; Joseph Zeira; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2006.
Series: Working paper series (National Bureau of Economic Research), no. 12581.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the US, while technological progress at the "top," i.e., at the high-tech sector, is faster in the US than in Europe. This paper suggests that the main difference between Europe and the US in this respect is their different labor market policies. European countries reduce wage flexibility and inequality  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Alberto Alesina; Joseph Zeira; National Bureau of Economic Research.
OCLC Number: 73504774
Description: 1 online resource (1 volume).
Series Title: Working paper series (National Bureau of Economic Research), no. 12581.
Responsibility: Alberto Alesina, Joseph Zeira.

Abstract:

"Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the US, while technological progress at the "top," i.e., at the high-tech sector, is faster in the US than in Europe. This paper suggests that the main difference between Europe and the US in this respect is their different labor market policies. European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum-wage laws, permanent unemployment subsidies, firing costs, etc. Such policies create incentives to develop and adopt labor-saving capital intensive technologies at the low end of the skill distribution. At the same time technical progress in the US is more skill biased than in Europe, since American skilled wages are higher"--National Bureau of Economic Research web site.

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