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Effects on Employment of Trade and Technical Change: Evidence from Norway

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Author Info
Kjell G. Salvanes
Svein Erik F¯rre

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Abstract

Trade and technology-related explanations for the change in plant-level skill composition in Norway are examined by exploiting matched employer-employee data. The results show that the changes are taking place mainly through a reallocation of labour resources between plants within sectors, leading to greater dispersion of skills across establishments. Results from estimating plant-level dynamic demand functions support skill-biased technological change via a positive gross job creation effect. A strong impact from trade is also found along the gross job destruction margin for low- and medium-educated workers in sectors exposed to increased competition from abroad. Highly educated workers are insulated from negative trade effects. Copyright The London School of Economics and Political Science 2003.

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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 70 (2003)
Issue (Month): 278 (05)
Pages: 293-329
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Handle: RePEc:bla:econom:v:70:y:2003:i:278:p:293-329

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  1. Michael Rosholm & Marianne Røed & Pål Schøne, 2006. "Are New Work Practices and New Technologies Biased against Immigrant Workers?," IZA Discussion Papers 2135, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Torbjørn Hægeland, Dag Rønningen and Kjell G. Salvanes, 2007. "Adapt or withdraw? Evidence on technological changes and early retirement using matched worker-firm data," Discussion Papers 509, Research Department of Statistics Norway. [Downloadable!]
  4. Spyros Arvanitis & Euripidis N. Loukis, 2009. "Employee Education, Information and Communication Technology, Workplace Organization and Trade: A Comparative Analysis of Greek and Swiss Enterprises," KOF Working papers 09-234, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  5. Roger Bjørnstad and Terje Skjerpen, 2003. "Technology, Trade and Inequality," Discussion Papers 364, Research Department of Statistics Norway. [Downloadable!]
  6. Satu Nurmi, 2004. "Employment Dynamics and Openness to Trade in Finnish Manufacturing," Discussion Papers 956, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Carlos Henrique Corseuil & Hidehiko Ichimura, 2006. "New Evidences on What Job Creation and Job Destruction Represent," Discussion papers 06023, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  8. Frank Cörvers & Jaanika Meriküll, 2007. "Occupational structures across 25 EU countries: the importance of industry structure and technology in old and new EU countries," Economic Change and Restructuring, Springer, vol. 40(4), pages 327-359, December. [Downloadable!] (restricted)
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