abstract: 'With factor-biased technical progress described as labor-saving and

  skill-biased technical changes, there are concerns that technological

  innovation can lead to unemployment and widen inequality in the economy.

  This study explores impacts of factor-biased technical changes on the

  economic system in terms of economic growth, employment, and

  distribution, using a computable general equilibrium (CGE) model. The

  results show that technological innovation contributes to higher level

  of economic growth with productivity improvements. However, our analysis

  suggests that economic growth accompanied by skill- and capital-biased

  technical progress disproportionately increases demand for capital and

  high-skilled labor over skilled and unskilled labor. This shift in the

  value-added composition is found to deepen income inequality, as more

  people in higher income groups benefit from skill premium and capital

  earnings. Our results suggest that policymakers should prepare a wide

  range of policy measures, such as reforms in educational programs and

  taxation systems, in order to ensure sustainable growth.'
affiliation: 'Yeo, Y (Corresponding Author), Seoul Natl Univ, Technol Management Econ
  \& Policy Program, Seoul 151742, South Korea.

  Jung, Sungmoon, Busan Inst S\&T Evaluat \& Planning, 79 Centum Jungang Ro, Busan,
  South Korea.

  Lee, Jeong-Dong; Yeo, Yeongjun, Seoul Natl Univ, Technol Management Econ \& Policy
  Program, Seoul 151742, South Korea.

  Hwang, Won-Sik, Korea Inst Ind Econ \& Trade, 370 Sicheong Daero, Sejong Si 30147,
  South Korea.'
author: Jung, Sungmoon and Lee, Jeong-Dong and Hwang, Won-Sik and Yeo, Yeongjun
author-email: 'narkimess@snu.ac.kr

  leejd@snu.ac.kr

  yel0sik@snu.ac.kr

  yyj913@snu.ac.kr'
author_list:
- family: Jung
  given: Sungmoon
- family: Lee
  given: Jeong-Dong
- family: Hwang
  given: Won-Sik
- family: Yeo
  given: Yeongjun
da: '2023-09-28'
doi: 10.1016/j.econmod.2016.10.014
eissn: 1873-6122
files: []
issn: 0264-9993
journal: ECONOMIC MODELLING
keywords: 'Innovation; Economic growth; Employment; Computable general equilibrium;

  South Korea'
keywords-plus: 'TECHNOLOGICAL-CHANGE; INFORMATION TECHNOLOGY; WAGE INEQUALITY; SKILLED

  LABOR; INNOVATION; INVESTMENT; LEVEL; EDUCATION; DEMAND'
language: English
month: JAN
number-of-cited-references: '64'
orcid-numbers: Yeo, Yeongjun/0000-0001-9782-3924
pages: 424-438
papis_id: 34b3fd459d8cc11c0cfb4b7fbd17c3b3
ref: Jung2017growthequity
times-cited: '26'
title: 'Growth versus equity: A CGE analysis for effects of factor-biased technical
  progress on economic growth and employment'
type: article
unique-id: WOS:000390502500036
usage-count-last-180-days: '6'
usage-count-since-2013: '92'
volume: '60'
web-of-science-categories: Economics
year: '2017'