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The Dynamics of Hours Worked and Technology

Cantore, Cristiano, Ferroni, Filippo, Leon-Ledesma, Miguel A. (2017) The Dynamics of Hours Worked and Technology. Journal of Economic Dynamics and Control, 82 . pp. 67-82. ISSN 0165-1889. E-ISSN 1879-1743. (doi:10.1016/j.jedc.2017.05.009) (KAR id:61767)

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https://doi.org/10.1016/j.jedc.2017.05.009

Abstract

The response of hours worked to technology shocks in the postwar US economy has increased over time. We offer a structural interpretation of this important time-varying macroeconomic moment. The time varying patterns captured by a structural VAR are consistent with those obtained from a parsimonious RBC model with a less than unitary elasticity of substitution between capital and labour (σ). The observed changes in the response of hours are attributable to increases in the magnitude of the degree of capital-labour substitution. Finally, we conjecture that the observed time-variation in σ is related to changes in the skill composition of the work force and biases in technological change.

Item Type: Article
DOI/Identification number: 10.1016/j.jedc.2017.05.009
Uncontrolled keywords: Real Business Cycles models, Constant Elasticity of Substitution production function, Hours worked, technology shocks
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Miguel Leon-Ledesma
Date Deposited: 18 May 2017 09:31 UTC
Last Modified: 06 Feb 2020 14:13 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/61767 (The current URI for this page, for reference purposes)
Leon-Ledesma, Miguel A.: https://orcid.org/0000-0002-3558-2990
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