Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-23T06:38:13.517Z Has data issue: false hasContentIssue false
  • English
  • Français

TALENT UTILIZATION AND SEARCH FOR THE APPROPRIATE TECHNOLOGY

Published online by Cambridge University Press:  03 May 2013

Tali Regev  and
Hosny Zoabi
Tali Regev*
Affiliation:
The Eitan Berglas School of Economics, Tel Aviv University
Hosny Zoabi
Affiliation:
The Eitan Berglas School of Economics, Tel Aviv University
*
Address correspondence to: Tali Regev, The Eitan Berglas School of Economics, Tel Aviv University, P.O. Box 39040, Ramat Aviv, Tel Aviv 69978, Israel; e-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper presents a model of development that is driven by matching between talents and technologies. Differences in productivity across countries are amplified by three dimensions of talent utilization: the range of talents utilized, the density of a specific talent utilized, and the average match quality in the economy. In our model, higher productivity increases the number of technologies available, enhancing the opportunities for individuals to match their talents to specific technologies and increasing the returns to search. More intensive search further contributes to talent utilization.

Keywords

Income LevelTotal Factor ProductivityTechnological DensityAppropriate TechnologyTalent UtilizationSearch
Type
Articles
Information
Macroeconomic Dynamics , Volume 18 , Issue 4 , June 2014 , pp. 863 - 882
Copyright
Copyright © Cambridge University Press 2013 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Abramovitz, Moses (1956) Resources and output trends in the United States since 1870. American Economic Review 46, 5–23.Google Scholar
Acemoglu, Daron (1998) Why do new technologies complement skills? Directed technical change and wage inequality. Quarterly Journal of Economics 113 (4), 1055–1089.Google Scholar
Acemoglu, Daron, Antrás, Pol, and Helpman, Elhanan (2007) Contracts and technology adoption. American Economic Review 97 (3), 916–943.Google Scholar
Acemoglu, Daron and Zilibotti, Fabrizio (2001) Productivity differences. Quarterly Journal of Economics 116 (2), 563–606.Google Scholar
Ahlin, Christian (2010) Matching for Credit: Risk and Diversification in Thai Microcredit Groups. Working Paper 2588, eSocialSciences.Google Scholar
Albrecht, James and Vroman, Susan (2002) A matching model with endogenous skill requirements. International Economic Review 43 (1), 283–305.CrossRefGoogle Scholar
Alder, Simeon D. (2010) In the Wrong Hands: Complementarities, Resource Allocation, and Aggregate TFP. 2009 Meeting Papers 1265. Society for Economic Dynamics.Google Scholar
Basu, Susanto and Weil, David N. (1998) Appropriate technology and growth. Quarterly Journal of Economics 113 (4), 1025–1054.Google Scholar
Baumgardner, James (1988a) The division of labor, local markets, and worker organization. Journal of Political Economy 96, 509–527.CrossRefGoogle Scholar
Baumgardner, James (1988b) Physicians’ services and the division of labor across local markets. Journal of Political Economy 96 (5), 948–982.Google Scholar
Bils, Mark and Klenow, Peter J. (2000) Does schooling cause growth? American Economic Review 90 (5), 1160–1183.Google Scholar
Brown, Charles and Medoff, James (1989) The employer size–wage effect. Journal of Political Economy 97 (5), 1027–1059.Google Scholar
Caselli, Francesco (2005) Accounting for cross-country income differences. In Aghion, Philippe and Durlauf, Steven (eds.), Handbook of Economic Growth, Ist ed. vol. 1, pp. 679–741. Amsterdam: Elsevier.Google Scholar
Chari, V.V., Kehoe, P.J., and McGrattan, E.R. (1996) The Poverty of Nations: A Quantitative Exploration. NBER working paper 5414.Google Scholar
Crawford, Vincent P. and Knoer, Elsie Marie (1981) Job matching with heterogeneous firms and workers. Econometrica 49 (2), 437–450.Google Scholar
Davidson, Carl, Matusz, Steven J., and Shevchenko, Andrei (2008) Globalization and firm level adjustment with imperfect labor markets. Journal of International Economics 75 (2), 295–309.Google Scholar
Decreuse, Bruno (2008) Choosy search and the mismatch of talent. International Economic Review 49 (3), 1067–1089.Google Scholar
Duranton, Gilles and Puga, Diego (2004) Microfoundations of urban agglomeration economies. In Henderson, J.V. and Thisse, J.F. (eds.), Handbook of Regional and Urban Economics, Vol. 4, Ch. 48. Elsevier. http://ideas.repec.org/s/eee/reghes.html.Google Scholar
Fuentes, J. Rodrigo and Morales, Marco (2011) On the measurement of TFP: A latent variable approach. Macroeconomic Dynamics 15 (2), 145–159.Google Scholar
Garicano, Luis and Hubbard, Thomas N. (2009) Specialization, firms, and markets: The division of labor within and between law firms. Journal of Law, Economics, and Organization 25 (2), 339–371.Google Scholar
Gautier, Pieter A. and Teulings, Coen N (2004) The right man for the job. Review of Economic Studies. 71 (2), 553–580.Google Scholar
Grossman, Gene M. and Helpman, Elhanan (1991) Quality ladders in the theory of growth. Review of Economic Studies 58 (1), pp. 43–61.Google Scholar
Grossman, Gene M. and Helpman, Elhanan (2005) Outsourcing in a global economy. Review of Economic Studies 72 (1), 135–159.CrossRefGoogle Scholar
Hall, Robert E. and Jones, Charles I. (1999) Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics 114 (1), 83–116.Google Scholar
Hendricks, Lutz (2002) How important is human capital for development? Evidence from immigrant earnings. American Economic Review 92 (1), 198–219.Google Scholar
Idson, Todd L. and Oi, Walter Y. (1999) Workers are more productive in large firms. American Economic Review, Papers and Proceedings 89 (2), 104–108.Google Scholar
Jeong, Hyeok and Townsend, Robert M. (2007) Sources of TFP growth: Occupational choice and financial deepening. Economic Theory 32 (1), 179–221.Google Scholar
Kim, Sunwoong (1989) Labor specialization and the extent of the market. Journal of Political Economy 97, 692–705.Google Scholar
Klenow, Peter and Rodriguez-Clare, Andres (1997) The neoclassical revival in growth economics: Has it gone too far? In Bernanke, Ben S. and Rotemberg, Julio J. (eds.), NBER Macroeconomics Annual 1997, pp. 73–103. Cambridge, MA: MIT Press.Google Scholar
Lentz, Rasmus and Mortensen, Dale T. (2010) Labor market models of worker and firm heterogeneity. Annual Review of Economics 2, 577–602.Google Scholar
Mankiw, Gregory N., David Romer, and Weil, David N. (1992) A contribution to the empirics of economic growth. Quarterly Journal of Economics 107, 407–437.Google Scholar
Moro, Alessio (2012) Biased technical change, intermediate goods and total factor productivity. Macroeconomic Dynamics 16 (2), 184–203.Google Scholar
Neal, Derek (1995) Industry-specific human capital: Evidence from displaced workers. Journal of Labor Economics 13 (4), 653–677.Google Scholar
Parent, Daniel (2000) Industry-specific capital and the wage profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics. Journal of Labor Economics 18 (2), 306–323.Google Scholar
Parente, Stephen L. and Prescott, Edward C. (2000) Barriers to Riches. Cambridge, MA: MIT Press.CrossRefGoogle Scholar
Parente, Stephen L., Rogerson, Richard, and Wright, Randall (2000) Homework in development economics: Household production and the wealth of nations. Journal of Political Economy 108 (4), 680–687.Google Scholar
Prescott, Edward C. (1998) Needed: A theory of total factor productivity. International Economic Review 39 (3), 525–552.Google Scholar
Salop, Steven C. (1979) Monopolistic competition with outside goods. Bell Journal of Economics 10, 141–156.Google Scholar
Seshadri, Ananth and Manuelli, Rodolfo E. (2005) Human Capital and the Wealth of Nations. No. 56, 2005 Meeting Papers, Society for Economic Dynamics. http://EconPapers.repec.org/RePEc.red:sed005:56.Google Scholar
Shimer, Robert (2005) The assignment of workers to jobs in an economy with coordination frictions. Journal of Political Economy 113 (5), 996–1025.CrossRefGoogle Scholar
Weil, David N. (2005) Accounting for the Effect of Health on Economic Growth. Unpublished manuscript, Brown University.Google Scholar
Yang, Xiaokai and Shi, He Ling (1992) Specialization and product diversity. American Economic Review 82 (2), 392–398.Google Scholar
Zeira, Joseph (1998) Workers, machines, and economic growth. Quarterly Journal of Economics 113 (4), 1019–1117.Google Scholar
Zhou, Haiwen (2004) The division of labor and the extent of the market. Economic Theory 24, 195–209.Google Scholar