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The New Economy and Demand for Skills

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  • Ross Kelly

    ()
    (University of Western Australia)

  • Philip E.T. Lewis

    (University of Canberra)

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    Abstract

    There has been an increasing dispersion in earnings observed in many OECD countries over the last two decades along with shedding of low skill workers and increased demand for skilled workers. This has been attributed to a number of diffent causes including skill-biased technological change. In this paper the attributes of different occupations are used to obtain measures of three distinct skill dimensions- motor skills, interactive skills and cognitive skills- plus education. The paper presents an analysis of skill change for each of the skill dimensions over the period 1986 to 1996. Further analysis is carried out using regression modelling to determine whether the IT intensity of an industry has had any influence on the extent of skill change over the period being analysed. The main finding is that industries that spend a relatively high proportion of capital expenditure on IT equipment, after controlling for other factors, also have experienced a decrease in the average interactive skill level of the workforce. Other measures of IT intensity are positively related with most skill dimensions, the main exception being motor skills.

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    Bibliographic Info

    Article provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics.

    Volume (Year): 6 (2003)
    Issue (Month): 1 (March)
    Pages: 135-152

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    Handle: RePEc:ozl:journl:v:6:y:2003:i:1:p:135-152

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    Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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    Related research

    Keywords: Technological Change: General Technological Change: Choices and Consequences (includes Impact on Production; Welfare; Income Distribution; International Competitiveness; Military Power; Measurement; and Case Studies; International Transfer of Technology);

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