Li-Ju Chen: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Abstract: This paper tests the growth model of distance to the technological frontier, which states that the closer an economy is to the frontier, the higher the relative importance of innovation relative to imitation as a source of productivity growth. Hence, an economy closer to the technological frontier should invest more in skilled labor since innovation is a skill-intensive activity. I use the proportion of female legislators as an instrument for skilled labor, in contrast to Vandenbussche, Aghion, and Meghir (2006) who used lagged educational expenditures. The results with the new instrument are consistent with the theoretical prediction and the previous results of Vandenbussche, Aghion, and Meghir (2006).
23 pages, January 15, 2009
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