High-Tech Capital Formation and Labor Composition in U.S. Manufacturing Industries: An Exploratory Analysis

41 Pages Posted: 9 Jul 2004

See all articles by Ernst R. Berndt

Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics; National Bureau of Economic Research (NBER); University of Hartford - Barney School of Business

Larry S. Rosenblum

affiliation not provided to SSRN

Date Written: March 1992

Abstract

In this paper we report results of an exploratory empirical effort examining relationships between investments in high-tech information technology capital and the distribution of employment, both by occupation and by level of educational attainment. Our data cover the two-digit U.S. manufacturing industries. annually, 1968-86. We find that increases in the high-tech composition of capital (OF/K) are positively related to growth in white collar. non-production worker hours, and that increases in white collar hours account for most of the reduction in aggregate labor productivity associated with increases in high-tech capital. In terms of educational attainment, within the blue collar occupations we find clear evidence in support of skill upgrading toward more educated workers occurring along with increases in OF/K. While point estimates are not very precise, among white collar occupations we find that hours provided by the least and most educated workers increase with OF/K, while hours provided by those with high-school and some college education are adversely affected.

Suggested Citation

Berndt, Ernst R. and Morrison Paul, Catherine J. and Rosenblum, Larry S., High-Tech Capital Formation and Labor Composition in U.S. Manufacturing Industries: An Exploratory Analysis (March 1992). NBER Working Paper No. w4010. Available at SSRN: https://ssrn.com/abstract=420293

Ernst R. Berndt (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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National Bureau of Economic Research (NBER)

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Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics ( email )

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National Bureau of Economic Research (NBER)

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United States

University of Hartford - Barney School of Business

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West Hartford, CT 06117
United States

Larry S. Rosenblum

affiliation not provided to SSRN

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