Working Paper: NBER ID: w29863
Authors: Philippe Aghion; Ufuk Akcigit; Ari Hyytinen; Otto Toivanen
Abstract: We look at how the arrival of an invention affects wage returns and probability of moving out of employment for white- and blue-collar coworkers of the inventor. First results suggest that older workers are hurt by the arrival of an invention. This negative effect disappears when we control for education and, in particular, for time that since obtaining the last formal degree, i.e., distance to human capital frontier. If anything, this effect is slightly higher for non-STEM than STEM-educated co-workers. This result suggests that retraining programs could be helpful in making the process of creative destruction and economic growth more inclusive.
Keywords: No keywords provided
JEL Codes: O31; I24; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| invention (O31) | wages of non-inventing coworkers (J33) |
| invention (O31) | employment probabilities of non-inventing coworkers (J29) |
| age (J14) | returns to invention (O31) |
| distance to human capital frontier (J24) | returns to invention (O31) |
| time since last degree (C41) | returns to invention (O31) |
| time since education (I21) | probability of non-employment (J69) |
| recent low education diplomas (Y40) | employment stability for younger workers (J63) |