{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,11,24]],"date-time":"2025-11-24T14:50:12Z","timestamp":1763995812012,"version":"3.45.0"},"reference-count":30,"publisher":"Wiley","license":[{"start":{"date-parts":[[2025,11,24]],"date-time":"2025-11-24T00:00:00Z","timestamp":1763942400000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["Bulletin of Econ Res"],"abstract":"<jats:title>ABSTRACT<\/jats:title>\n                  <jats:p>This paper examines how labor\u2010supply responsiveness, captured by the inverse Frisch elasticity, shapes wage inequality in the presence of directed technical change and automation. We develop a dynamic general equilibrium model with task\u2010based production, heterogeneous labor, and endogenous R&amp;D. The model yields closed\u2010form expressions for the skill premium and sectoral wage gaps. We show that while the Frisch elasticity does not affect the long\u2010run growth rate, it plays a critical role in amplifying wage differentials. As labor supply becomes more elastic, small technological or compositional changes lead to disproportionate inequality. Contrary to conventional narratives, automation alone does not generate wage polarization unless combined with highly responsive labour supply and a sufficient mass of routine workers. A calibration based on US data confirms that realistic inequality patterns arise only for moderate values of the Frisch elasticity. The analysis provides new insights on the interaction between supply\u2010side elasticities and technological change in shaping wage\u00a0structures.<\/jats:p>","DOI":"10.1111\/boer.70028","type":"journal-article","created":{"date-parts":[[2025,11,24]],"date-time":"2025-11-24T14:47:34Z","timestamp":1763995654000},"update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":0,"title":["Frisch Elasticity, Directed Technical Change, and Automation: A Unified Framework for Wage Polarization and Skill Premium Dynamics"],"prefix":"10.1111","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-9597-9850","authenticated-orcid":false,"given":"\u00d3scar","family":"Afonso","sequence":"first","affiliation":[{"name":"Faculdade de Economia Faculdade de Economia, Universidade do Porto  Porto Portugal"}]}],"member":"311","published-online":{"date-parts":[[2025,11,24]]},"reference":[{"issue":"4","key":"e_1_2_8_2_1","doi-asserted-by":"crossref","first-page":"781","DOI":"10.1111\/1467-937X.00226","article-title":"Directed Technical Change","volume":"69","author":"Acemoglu D.","year":"2002","journal-title":"Review of Economic Studies"},{"key":"e_1_2_8_3_1","volume-title":"Introduction to Modern Economic Growth","author":"Acemoglu D.","year":"2009"},{"key":"e_1_2_8_4_1","doi-asserted-by":"crossref","first-page":"1043","DOI":"10.1016\/S0169-7218(11)02410-5","article-title":"Skills, Tasks and Technologies: Implications for Employment and Earnings","volume":"4","author":"Acemoglu D.","year":"2011","journal-title":"Handbook of Labor Economics"},{"key":"e_1_2_8_5_1","doi-asserted-by":"crossref","first-page":"48","DOI":"10.1257\/pandp.20181020","article-title":"Modeling Automation","volume":"108","author":"Acemoglu D.","year":"2018","journal-title":"AEA Papers and Proceedings"},{"issue":"1","key":"e_1_2_8_6_1","doi-asserted-by":"crossref","first-page":"13","DOI":"10.1080\/00036840500367625","article-title":"Skill\u2010Biased Technological Knowledge Without Scale Effects","volume":"38","author":"Afonso O.","year":"2006","journal-title":"Applied Economics"},{"issue":"1","key":"e_1_2_8_7_1","doi-asserted-by":"crossref","first-page":"181","DOI":"10.1007\/s10290-011-0109-7","article-title":"Scale\u2010Independent North\u2010South Trade Effects on the Technological\u2010Knowledge Bias and on Wage Inequality","volume":"148","author":"Afonso O.","year":"2012","journal-title":"Review of World Economics"},{"key":"e_1_2_8_8_1","doi-asserted-by":"crossref","first-page":"1467","DOI":"10.1007\/s00191-022-00801-7","article-title":"The Effects of Automation and Lobbying in Wage Inequality: A Directed Technical Change Model with Routine and Non\u2010Routine Tasks","volume":"32","author":"Afonso O.","year":"2022","journal-title":"Journal of Evolucionary Economics"},{"key":"e_1_2_8_9_1","volume-title":"Endogenous Growth Theory","author":"Aghion P.","year":"1998"},{"issue":"5","key":"e_1_2_8_10_1","doi-asserted-by":"crossref","first-page":"1553","DOI":"10.1257\/aer.103.5.1553","article-title":"The Growth of Low\u2010Skill Service Jobs and the Polarization of the US Labor Market","volume":"103","author":"Autor D.","year":"2013","journal-title":"American Economic Review"},{"issue":"2","key":"e_1_2_8_11_1","doi-asserted-by":"crossref","first-page":"843","DOI":"10.1016\/j.jet.2012.08.005","article-title":"A Two\u2010Sector Model of Endogenous Growth With Leisure Externalities","volume":"148","author":"Azariadis C.","year":"2013","journal-title":"Journal of Economic Theory"},{"key":"e_1_2_8_12_1","volume-title":"Economic Growth","author":"Barro R.","year":"2004"},{"key":"e_1_2_8_13_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jdeveco.2024.103411"},{"key":"e_1_2_8_14_1","doi-asserted-by":"crossref","unstructured":"Bloom D. 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