TY  - RPRT
        AU  - Balleer, Almut
AU  - Rens, Thijs van
        TI  - Cyclical Skill-Biased Technological Change
        PY  - 2009/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4258
        UR  - https://www.iza.org/publications/dp4258
        AB  - 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.
        KW  - long-run restrictions
KW  - skill premium
KW  - VAR
KW  - skill-biased technology
KW  - capital-skill complementarity
KW  - business cycle
        ER  -