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Wilfrid Laurier University Leaf
April 18, 2014
Canadian Excellence


Wing Hong Chan

Occupational Labour Demand and the Sources of Nonneutral Technical Change (ABSTRACT)

Chan, W.H. & Rich, D.

published: 2005 | Research publication | Refereed Journals - Economics

Chan, W.H. and D. Rich, (2005). "Occupational Labour Demand and the Sources of Nonneutral Technical Change". Oxford Bulletin of Economics & Statistics, forthcoming.

ABSTRACT: This article introduces a two-step empirical approach for examining both the nature and sources of nonneutral technical change across multiple occupations. First, conventional labour demand parameter estimates and unbiased tests for neutrality are obtained in the context of a flexible cost system. The resulting input-specific indices of technical change, unconstrained with respect to time path, facilitate subsequent evaluation of proposed sources. In our application to employment decisions of airline firms, we find labour-saving technical change that is nonneutral across occupations. We also document occupation-specific responses to aircraft technology adoption, route system developments and an unprecedented range of technical change elements.

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revised Apr 20/05

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