Alesina, Alberto. <br/><br/>
Technology and Labor Regulations:  Theory and Evidence / 
Alberto Alesina, Michele Battisti, Joseph Zeira. 
 - Cambridge, Mass.  National Bureau of Economic Research  2015. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w20841 .
 - Working Paper Series (National Bureau of Economic Research)  no. w20841. .
<br/><br/> January 2015. 
<br/><br/> This paper shows that different labor market policies can lead to differences in technology across sectors in a model of labor saving technologies. Labor market regulations reduce the skill premium and as a result, if technologies are labor saving, countries with more stringent labor regulation, which are binding for low skilled workers, become less technologically advanced in their high-skilled sectors, and more technologically advanced in their low-skilled sectors. We then present data on capital output ratios, on estimated productivity levels and on patent creation, which support the predictions of our model. 
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