%0 Report
        %A Balleer, Almut
%A Rens, Thijs van
        %T Cyclical Skill-Biased Technological Change
        %D 2009
        %8 2009 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4258
        %U https://www.iza.org/publications/dp4258
        %X Over the past two decades, technological progress has been biased towards making skilled labor more productive. What does skill-biased technological change imply for business cycles? To answer this question, we construct a quarterly series for the skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long run restrictions. We find that hours worked fall in response to skill-biased, but not in response to skill-neutral improvements in technology. Skill-biased technology shocks are associated with increases in the relative price of investment, indicating that capital and skill are substitutes in aggregate production.
        %K long-run restrictions
%K skill premium
%K VAR
%K skill-biased technology
%K capital-skill complementarity
%K business cycle