Measurement And Analysis Of Capital-Skill Complementarity And Skill-biased Technical Change

This paper mainly studies the skills-biased technological change under the complementary effect of capital and skills to solve the problem of ignoring the important role of capital.The main research contents of this article are as follows:First,based on the three-element two-layer nested CES production function and quality ladder-type technology innovation model,this paper reveals various factors that determine the technical bias of technology advancement through theoretical analysis of corporate behavior.It is found that the skill-biased technological change depends on the direct effect of technological change,the indirect effect of capital-skill complementarity,and the scale effect of factor allocation.Among them,the indirect effect leads to the skill-biased technological change of the two mechanisms.First,the technical level of capital improves the productivity of skilled labor,and second,the expansion of capital scale bias towards skilled labor.Second,this paper uses a non-linear similar uncorrelated estimation method to estimate the parameters of the three-factor double-layer cascaded CES production function across the country,the eight integrated economic zones,and the provinces from 1996 to 2017 to test the existence of complementary effect of capital and skills.First,there are significant complementarities of relative capital skills at both the national and eight economic zones.Second.the results of the inter-provincial budget indicate that provinces with complementary capital skills account for a large proportion.there 25 provinces have capital-skill complementarity accounting for 83.33% of the total,while only five provinces do not have capital skills complementarity.The universal existence of capital-skill complementarity indicates that the economic development situation of China is not much different,and they are all at the level of middle income.The existence of capital-skill complementarity is mainly attributed to three factors,the technical characteristics of capital,the improvement of automation and the upgrading of unskilled labor into skilled labor.Third,the five regions that did not have the complementary effect of capital skills were mainly located in the inland regions,and three regions showed agglomeration due to the "siphon effect".Third,the measured parameters are used to measure the index of the country,the eight comprehensive economic zones and the provinces.according to the calculation results,we have the following results: First,the skill bias index of technological change in China is 0.0983,the indexes of the eight major comprehensive economic zones are positive,the indexes of most provinces are positive,and only 3 provinces biased to non-skilled labor.Analyzed from the three levels of the country,China's technological change is biased towards skilled labor.What's more,At the national level,62.5% of the regions in the eight major economic zones and 63.34% of the provinces at the inter-provincial level,the indirect effect has contributed the most to the direction of technological change.As a result,the complementary effect plays an import role in the skill bias technological change,but this has been ignored by the existing literature.Finally,direct and indirect effects show positive spatial correlation through overlapping effects.scale effects show negative spatial correlation due to competition effects.as a result,the overall technological change bias index shows negative spatial effects under the combined effects of overlapping effects and competitive effects.but only the scale effect was significant.