Labor-Augmenting Technology
(Redirected from Harrod Neutral Technological Change)
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A Labor-Augmenting Technology is an Economic Augmenting Technology that decreases the ratio of capital's marginal product to labour's marginal product for a given capital to labour ratio.
- AKA: Harrod Neutral Technological Change.
- Context:
- It can increase Labor's Share of Income.
- …
- Counter-Example(s):
- See: Technological Change.
References
2013
- Template:Synch http://wikipedia.org/wiki/Technological_change#Economics
- Technological change is a term that is used in economics to describe a change in the set of feasible production possibilities.
Neutral technological change refers to the behaviour of technological change in models. A technological innovation is Hicks neutral, following John Hicks (1932), if a change in technology does not change the ratio of capital's marginal product to labour's marginal product for a given capital to labour ratio. A technological innovation is Harrod neutral (following Roy Harrod) if the technology is labour-augmenting (i.e. helps labor); it is Solow neutral if the technology is capital-augmenting (i.e. helps capital).[1]
- Technological change is a term that is used in economics to describe a change in the set of feasible production possibilities.
- ↑ J.R. Hicks (1932, 2nd ed., 1963). The Theory of Wages, Ch. VI, Appendix, and Section III. Macmillan.
1998
- (Kahn, 1998) ⇒ James A. Kahn, and Jong-Soo Lim. (1998). “Skilled labor-augmenting technical progress in US manufacturing." The Quarterly Journal of Economics, 113(4).