TY  - GEN
AB  - In this paper we study the effect of different types of technological regime
changes on the evolution of industry concentration and wage inequality. Using
a calibrated agent-based macroeconomic framework, the Eurace@Unibi
model, we consider scenarios where the new regime is characterized by more
frequent respectively more substantial changes in the frontier technology
compared to the old regime. We show that under both scenarios the regime
change leads to an increase in the heterogeneity of productivity in the firm
population and to increased market concentration, where effects are much
less pronounced if the new regime differs from the old one with respect to
the frequency of innovations. If the new regime is characterized by an increase
of the size of the frontier jumps along the technological trajectory, the
evolution of the wage inequality has an inverted U-shape with a large fraction
of workers profiting in the very long run from high wages offered by dominant
high-tech firms. Finally, it is shown that (oberservable) heterogeneity of
worker skills plays an important role in generating these dynamic effects of
technological regime changes.
DA  - 2021
DO  - 10.4119/unibi/2952631
KW  - Agent Based Modeling
KW  - Technological Regime
KW  - Inequality
KW  - Firm Polarization
LA  - eng
PY  - 2021
SP  - 33-
TI  - Distributional Effects of Technological Regime Changes: Hysteresis, Concentration and Inequality Dynamics
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29526317
Y2  - 2024-11-24T18:38:16
ER  -