Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296126 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11037
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper develops an occupation-level measure of Capital-Embodied Innovation (CEI) by matching patents with capital goods based on their text similarity. The impact of CEI on labor demand is heterogeneous, depending on the similarity between capital and occupational tasks. Specifically, CEI associated with task-similar capital reduces the relative labor demand, whereas CEI related to task-dissimilar capital raises it. Between 1980 and 2015, capital used by high-wage occupations experienced more innovations in task-dissimilar capital and fewer in task-similar capital. CEI can explain 51% of the relative wage growth in high-wage occupations and significantly contributes to routine- and abstract-biased labor market changes.
Subjects: 
capital-embodied innovation
text analysis of patents
substitution between labor and capital
JEL: 
J24
J31
O33
O47
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.