Publication Type
Working Paper
Version
publishedVersion
Publication Date
3-2002
Abstract
Manufacturing is undergoing a revolution. Teamwork, job-rotation, multitasking are superseding the Taylorist mode of organization. The skilled workforce, armed with automated machines, is gradually substituting and replacing the unskilled. At the same time the U.S. economy is experiencing record breaking growth. Is faster growth a consequence of this manufacturing revolution? We study this by inserting dynamic career choice into endogenous growth by human capital accumulation. The answer is affirmative: The gradual substitution of the unskilled by the skilled boosts the long-term growth trend. The model also explains worsening wage inequality between as well as within the skilled groups.
Keywords
human capital growth, manufacturing revolution, wage inequality
Discipline
Economics | Growth and Development | Macroeconomics
Research Areas
Macroeconomics
Volume
03-2002
First Page
1
Last Page
26
Publisher
SMU Economics and Statistics Working Paper Series, No. 03-2002
City or Country
Singapore
Citation
LEUNG, Hing-Man.
Endogenous Growth and the Manufacturing Revolution. (2002). 03-2002, 1-26.
Available at: https://ink.library.smu.edu.sg/soe_research/693
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.