Title:Skill-Replacing Technological Change and the Skill Premium: Theory and Evidence

Speaker:Dr. Wenbo Zhu, University of International Business and Economics.

Time:12:00-13:30, November 9, Friday

Venue:Room 1211 A, Gezhi building

Abstract

I study the contrasting effects of product innovation and process innovation on the skill premium at the industry level. I develop a dynamic general equilibrium model in which firms conduct both types of innovation endogenously. Using the argument of the life cycle of technological progress, this model provides a stylized interpretation in which product innovation is skill-complementing, and process innovation is skill-replacing. I show how each type of innovation affects the skill premium through the labour demand channel, and also how the skill premium affects the incentives to develop each type of innovation differentially. Combining two novel European datasets, I estimate this two-way relationship derived from the model at the industry level. I address the issue of simultaneity using an instrumental variable approach suggested by the model. Finally, I calibrate the model and conduct some quantitative exercises.

Speaker's Information

朱文博，助理研究员，博士，现任职于对外经济贸易大学全球价值链研究院。2006年6月毕业于南开大学经济学院国际经济与贸易系，获经济学学士学位；2011年8月毕业于达尔豪斯大学（加拿大），获硕士学位；2017年9月毕业于女王大学（加拿大），获得博士学位。主要研究兴趣包括科技创新，收入差距，经济增长理论与实证。