Technical change, task allocation, and labor unions

Marczak, Martyna; Beissinger, Thomas; Brall, Franziska

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Marczak, Martyna ; Beissinger, Thomas ; Brall, Franziska

Technical change, task allocation, and labor unions

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URN: urn:nbn:de:bsz:100-opus-20806
URL: http://opus.uni-hohenheim.de/volltexte/2022/2080/

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SWD-Schlagwörter:

Technischer Fortschritt , Lohnbildung

Freie Schlagwörter (Englisch):

task approach , search and matching , labor unions , skill-biased technical chang e, labor demand , wage setting

Institut:

Institut für Volkswirtschaftslehre

DDC-Sachgruppe:

Wirtschaft

Dokumentart:

ResearchPaper

Schriftenreihe:

Hohenheim discussion papers in business, economics and social sciences

Bandnummer:

2022,05

Sprache:

Englisch

Erstellungsjahr:

2022

Publikationsdatum:

25.10.2022

Lizenz:

Veröffentlichungsvertrag mit der Universitätsbibliothek Hohenheim

Kurzfassung auf Englisch:

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.