A Year Older, A Year Wiser (and Farther from Frontier): Invention Rents and Human Capital Depreciation

Philippe Aghion , Ufuk Akcigit , Ari Hyytinen, Otto Toivanen

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We look at how the arrival of an invention affects wage returns and probability of moving out of employment for white- and blue-collar coworkers of the inventor. First results suggest that older workers are hurt by the arrival of an invention. This negative effect disappears when we control for education and, in particular, for time that since obtaining the last formal degree, i.e., distance to human capital frontier. If anything, this effect is slightly higher for non-STEM than STEM-educated co-workers. This result suggests that retraining programs could be helpful in making the process of creative destruction and economic growth more inclusive.
Original languageEnglish
Peer-reviewed scientific journalReview of Economics and Statistics
ISSN0034-6535
DOIs
Publication statusPublished - 15.11.2022
MoE publication typeA1 Journal article - refereed

Keywords

  • 511 Economics

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