Is technical change directed by the supply of skills?

2002

Abstract In a recent contribution, Acemoglu [Quarterly Journal of Economics 113 (1998) 1055] modelled the effects of an increase in the supply of skills on the skill premium. We estimate a model to disentangle the short-run substitution effects and the effects of skill-biased technical change using industry data for South Korea for the period 1974–1998.