Technology and labor regulations
By: Alberto Alesina, Joseph Zeira
Contributors: Zeira, Joseph; National Bureau of Economic Research
Series: NBER working paper series -- working paper 12581; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12581.
Publisher: National Bureau of Economic Research
Published: 2006
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the US, while technological progress at the "top," i.e., at the high-tech sector, is faster in the US than in Europe.  This paper suggests that the main difference between Europe and the US in this respect is their different labor market policies.  European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum-wage laws, permanent unemployment subsidies, firing costs, etc.  Such policies create incentives to develop and adopt labor-saving capital intensive technologies at the low end of the skill distribution.  At the same time technical progress in the US is more skill biased than in Europe, since American skilled wages are higher"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 10/13/2006.

Includes bibliographical references.

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