Macro/Trade Seminar | Capital-Skill Complementarity in Firms and in the Aggregate Economy by Danial Lashkari – School of Economics Macro/Trade Seminar | Capital-Skill Complementarity in Firms and in the Aggregate Economy by Danial Lashkari – School of Economics

Macro/Trade Seminar | Capital-Skill Complementarity in Firms and in the Aggregate Economy by Danial Lashkari

School of Economics

  Invites you to a

Macroeconomics and Trade seminar presented by

Danial Lashkari

(Federal Reserve Bank of New York)

 

 Capital-Skill Complementarity
in Firms and in the Aggregate Economy

Co authors:

Giuseppe Berlingieri (ESSEC Business School)
Filippo Boeri (London School of Economics)
Jonathan Vogel (UCLA)

Wednesday 6 March 2024

10:00am – 11.30am

 Level 6 Seminar Room (650)

A02 Social Sciences Building
Camperdown Campus

The University of Sydney NSW 2006

We study capital-skill complementarity in a multi-sector theory of aggregate technology featuring firms with arbitrary and heterogeneous multi-factor production functions. Importantly, the theory allows for heterogeneity in factor prices across firms.

We characterize the elasticity of the aggregate skill premium to the price of equipment capital in terms of firm-level elasticitites of substitution across factors, the elasticities of substitution across firms and sectors, and the distribution of factor intensities across firms. Using micro data from France, we estimate the two sets of elasticities assuming a firm-level production function featuring heterogeneous cross-factor elasticities. The model predicts that the observed fall in equipment prices contributes to a sizable rise in the skill premium (around 6%), implying a modest degree of capital-skill complementarity. Using our framework we show how this rise is mostly counteracted by the relative decline of the skill premium among firms with higher skill intensities in France.

For further information contact: Macroeconomics and Trade seminar series coordinator

Dr James Graham (james.a.graham@sydney.edu.au)

For all upcoming seminars in School of Economics see Our events and Calendar

 

 

Date

Mar 06 2024
Expired!

Time

10:00 am - 11:30 pm

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