This paper analyzes the extent to which technology progress and youth employment are related. In doing so, we divide workers into two groups–young workers and old (prime-aged) workers - and then estimate the elasticity of substitution between (physical) capital and workers à la Jaimovich et al. (2013. “The Demand for Youth: Explaining Age Differences in the Volatility of Hours.” American Economic Review 103 (7): 3022–3044) by using the Korean labour market data between 2000 and 2014. Our findings indicate that the elasticity of substitution is greater (or at least not smaller) for young workers than for old workers.
Bibliographical noteFunding Information:
This work was supported by Bank of Korea. We are grateful for helpful comments from the Bank of Korea Seminar. We also thank anonymous referees, Namju Kim, Taesu Kang, Byungkwun Ahn, and Wook Sohn for their detailed comments and suggestions. Shim and Yang acknowledge the financial support from the Bank of Korea. The views expressed in this paper are those of the authors and cannot be taken to represent those of the Bank of Korea.
© 2019, © 2019 Institute of East and West Studies, Yonsei University, Seoul.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics, Econometrics and Finance(all)
- Political Science and International Relations