TY  - RPRT
        AU  - Marczak, Martyna
AU  - Beissinger, Thomas
AU  - Brall, Franziska
        TI  - Technical Change, Task Allocation, and Labor Unions
        PY  - 2022/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15632
        UR  - https://www.iza.org/publications/dp15632
        AB  - 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.
        KW  - task approach
KW  - search and matching
KW  - labor unions
KW  - skill-biased technical change
KW  - labor demand
KW  - wage setting
        ER  -