More on Capital-Biased Technological Change

Since several people in comments and e-mails raised questions on my earlier post on capital-biased technological change I will try to clarify my point. The original impetus was a Paul Krugman post in which he raised the possibility that changes in technology were causing a redistribution from labor to capital. (He has since written further on the topic.)

My point was to note that this sort of redistribution cannot just be a matter of technology, it also involves a very big role for the laws a...