The response of hours worked to technology shocks in the postwar US economy has increased over time. We offer a structural interpretation of this important time-varying macroeconomic moment. The time varying patterns captured by a structural VAR are consistent with those obtained from a parsimonious RBC model with a less than unitary elasticity of substitution between capital and labour (σ). The observed changes in the response of hours are attributable to increases in the magnitude of the degree of capital-labour substitution. Finally, we conjecture that the observed time-variation in σ is related to changes in the skill composition of the work force and biases in technological change.

The dynamics of hours worked and technology / Cantore, C.; Ferroni, F.; Leon-Ledesma, M. A.. - In: JOURNAL OF ECONOMIC DYNAMICS & CONTROL. - ISSN 0165-1889. - 82:(2017), pp. 67-82. [10.1016/j.jedc.2017.05.009]

The dynamics of hours worked and technology

Cantore C.;
2017

Abstract

The response of hours worked to technology shocks in the postwar US economy has increased over time. We offer a structural interpretation of this important time-varying macroeconomic moment. The time varying patterns captured by a structural VAR are consistent with those obtained from a parsimonious RBC model with a less than unitary elasticity of substitution between capital and labour (σ). The observed changes in the response of hours are attributable to increases in the magnitude of the degree of capital-labour substitution. Finally, we conjecture that the observed time-variation in σ is related to changes in the skill composition of the work force and biases in technological change.
2017
constant elasticity of substitution production function; hours worked; real business cycles models; technology shocks
01 Pubblicazione su rivista::01a Articolo in rivista
The dynamics of hours worked and technology / Cantore, C.; Ferroni, F.; Leon-Ledesma, M. A.. - In: JOURNAL OF ECONOMIC DYNAMICS & CONTROL. - ISSN 0165-1889. - 82:(2017), pp. 67-82. [10.1016/j.jedc.2017.05.009]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1676280
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