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Labour Market Frictions, Social Policies, and Barriers to Technology Adoption

AutorMorales, Jesús E.
Palabras claveBarriers to technology adoption
Unemployment insurance
Workers displacement
Welfare cost
Fecha de publicación19-nov-2004
SerieUFAE and IAE Working Papers
ResumenBarriers to technological changes have recently been shown to be a key element in explaining differences in output per worker across countries. This study examines the role that labour market features and institutions have in explaining barriers to technology adoption. I build a model that includes labour market frictions, capital market imperfections and heterogeneity in workers' skills. I found that the unemployment rate together with the welfare losses that workers experiment after displacement are key factors in explaining the existence of barriers to technology adoption. Moreover, I found that none of these factors alone is sufficient to build these barriers. The theory also suggests that welfare policies like the unemployment insurance system may enhance these kinds of barriers while policies like a severance payment system financed by an income tax seem to be more effective in eliminating them.
Aparece en las colecciones: (IAE) Informes y documentos de trabajo
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