2023 KLEIN LECTURE—CAPITAL AND WAGES.
Does capital accumulation increase labor demand and wages? Neoclassical production functions, where capital and labor are q‐complements, ensure that the answer is yes, so long as labor markets are competitive. This result critically depends on the assumption that capital accumulation does not change...
| Publicado en: | International Economic Review Vol. 66; no. 1; pp. 3 - 25 |
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| Formato: | Artículo |
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Wiley-Blackwell
Feb2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=183984272&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 183984272 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00206598 IER jtl: International Economic Review issn: 00206598 maglogo: Y pubinfo: dt: Feb2025 vid: 66 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 183984272 10.1111/iere.12733 ppf: 3 ppct: 22 formats: tig: atl: 2023 KLEIN LECTURE—CAPITAL AND WAGES. aug: au: Acemoglu, Daron affil: Massachusetts Institute of Technology, , U.S.A. su: Technological innovations Industrial relations Labor demand Labor productivity Wage increases Capital stock sug: subj: Technological innovations Industrial relations Labor demand Labor productivity Wage increases Capital stock ab: Does capital accumulation increase labor demand and wages? Neoclassical production functions, where capital and labor are q‐complements, ensure that the answer is yes, so long as labor markets are competitive. This result critically depends on the assumption that capital accumulation does not change the technologies being developed and used. I adapt the theory of endogenous technological change to investigate this question when technology also responds to capital accumulation. I show that there are strong parallels between the relationship between capital and wages and existing results on the conditions under which equilibrium factor demands are upward‐sloping (e.g., Acemoglu, Econometrica 75(5) (2007), 1371–410). Extending this framework, I provide intuitive conditions and simple examples where a greater capital stock leads to lower wages, because it triggers more automation. I then offer an endogenous growth model with a menu of technologies where equilibrium involves choices over both the extent of automation and the rate of growth of labor‐augmenting productivity. In this framework, capital accumulation and technological change in the long run are associated with wage growth, but an increase in the saving rate increases the extent of automation, and initially reduces the wage rate and can subsequently depress its long‐run growth rate. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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