Date of this Version
Journal of Political Economy
Technological change can increase the productivity of the various factors of production in equal terms, or it can be biased toward a specific factor. We directly address the bias of technological change by measuring, at the level of the individual firm, how much of it is labor augmenting and how much is factor neutral. To do so, we develop a framework for estimating production functions when productivity is multidimensional. Using panel data from Spain, we find that technological change is biased, with both its labor-augmenting and its factor-neutral components causing output to grow by about 1.5 percent per year.
© 2018 University of Chicago Press.
Doraszelski, U., & Jaumandreu, J. (2018). Measuring the Bias of Technological Change. Journal of Political Economy, 126 (5), http://dx.doi.org/10.1086/697204
Additional FilesDoraszelski_Measuring the Bias of Technological Change_Supp Data Archive.zip (78 kB)
Doraszelski_Measuring the Bias of Technological Change_Supp Appendix.pdf (491 kB)
Date Posted: 15 June 2018
This document has been peer reviewed.