본문 내용으로 건더뛰기
Advanced search
Policy Study
Knowledge Capital and Labor’s Income Share

December 31, 2019

  • Author AUM. Sangmin
  • Series No. Policy Study 2019-06
  • Language Korean
PDF
Policy Study
Knowledge Capital and Labor’s Income Share

December 31, 2019

PDF
We investigate the degree which knowledge capital (software, in particular) substitutes labor. We first construct a model where the individual establishment with heterogneous factor intensities operates under the monopolistic competition. The establishment-level production is given by a nested CES function with labor, software and equipment. By exploiting local wage as an exogenous variation, we estimate the elasticity of substitution between labor and software, and the elasticity of substitution between labor and equipment. The aggregate elasticity of substitution between labor and capital (both for software and equipment) is obtained from the model and the data (Economic Census). The results suggest that software substitutes labor, whereas equipment complements labor. We discuss several policy implications focusing on growth policy and investment subsidy.
 
Share to email
보안코드
CHECK Send to email address!
Office of Global Economy
Providing Economic Forecast and Macroeconomic Policy Direction, the Groundwork for a Brighter Future

The Department of Macroeconomics is conducting researches on the macro economy and macroeconomic policy, particularly focusing on suggesting the analysis of macroeconomic trends and current status of the economy at home and abroad, the economic forecast, and the policy direction of the macro economy. The Department is also in charge of establishing, sustaining and maintaining various econometric models, based on which it analyses policy effects and develops a long-term economic forecast.

Main Tasks
  • Economic trend analysis, short- and long-term forecast
  • Policy study on macroeconomic management
  • Basic structural analysis on macroeconomic areas
  • Maintenance of multi-sectoral dynamic macroeconomic model
Department of Macroeconomic Policy
  • LEE. Tae Suk

    Director, Division of Analysis and Evaluation

    82-044-550-4725
  • CHO, Byungkoo On leave

    Director and Vice President, Department of North Korean Economy

    82-044-550-4725
  • LEE, Jongkyu

    Fellow

    82-044-550-4725
  • WEE, Hyeseung Dispatched

    Research Associate

    82-044-550-4725
  • NAM, Jinwook On leave

    Specialist

    82-044-550-4725
  • KIM, Seulki

    Research Associate

    82-044-550-4725
  • CHUN, Eunkyung

    Research Associate

    82-044-550-4725
Contact email address

We reject unauthorized collection of email addresses posted on our website by using email address collecting programs or other technical devices. To access the email address, please type in the characters exactly as they appear in the box below.

Contact email address
Contact email address