@TechReport{iza:izadps:dp15632, author={Marczak, Martyna and Beissinger, Thomas and Brall, Franziska}, title={Technical Change, Task Allocation, and Labor Unions}, year={2022}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={15632}, url={https://www.iza.org/publications/dp15632}, abstract={We propose a novel framework that integrates the "task approach" for a more precise production modeling into the search-and-matching model with low- and high-skilled workers, and wage setting by labor unions. We establish the relationship between task reallocation and changes in wage pressure, and examine how skill- biased technical change (SBTC) affects the task composition, wages of both skill groups, and unemployment. In contrast to the canonical model with a fixed task allocation, low-skilled workers may be harmed in terms of either lower wages or higher unemployment depending on the relative task-related productivity profile of both worker types. We calibrate the model to the US and German data for the periods 1995-2005 and 2010-2017. The simulated effects of SBTC on low-skilled unemployment are largely consistent with observed developments. For example, US low-skilled unemployment increases due to SBTC in the earlier period and decreases after 2010.}, keywords={task approach;search and matching;labor unions;skill-biased technical change;labor demand;wage setting}, }