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New Goods and the Relative Demand for Skilled Labor

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Author Info

  • Chong Xiang

    (Purdue University)

Abstract

This paper provides data on the output and factor payments of new goods for every four-digit industry in the U.S. manufacturing sector in the late 1970s and 1980s. For the entire manufacturing sector, the new goods' average skilled-labor intensity exceeds the old goods' by over 40%, and new goods can account for approximately 30% of the increase in the relative demand for skilled labor. Because new goods provide a direct measure of technology, this paper offers new evidence that technology has shifted demand in favor of skilled labor, consistent with the technology skill-complementarity hypothesis. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 87 (2005)
Issue (Month): 2 (May)
Pages: 285-298

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Handle: RePEc:tpr:restat:v:87:y:2005:i:2:p:285-298

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Debaere, Peter & Mostashari, Shalah, 2010. "Do tariffs matter for the extensive margin of international trade? An empirical analysis," Journal of International Economics, Elsevier, vol. 81(2), pages 163-169, July.
  2. Ariell Reshef, 2012. "Online Appendix to "Is Technological Change Biased Towards the Unskilled in Services? An Empirical Investigation"," Technical Appendices 11-241, Review of Economic Dynamics.
  3. James Harrigan & Ariell Reshef, 2011. "Skill Biased Heterogeneous Firms, Trade Liberalization, and the Skill Premium," NBER Working Papers 17604, National Bureau of Economic Research, Inc.
  4. Lundin, Nannan & Sjöholm, Fredrik & Ping, He & Qian, Jinchang, 2007. "Technology Development and Job Creation in China," Working Paper Series 697, Research Institute of Industrial Economics.
  5. Joseph K. Kaboski, 2009. "Education, Sectoral Composition and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 168-182, January.
  6. Italo Colantone & Rosario Crinò, 2011. "New Imported Inputs, New Domestic Products," Development Working Papers 312, Centro Studi Luca d\'Agliano, University of Milano.
  7. Cong S. Pham & Mehmet A. Ulubaşoğlu, 2013. "The Role Of Endowments, Technology And Size In International Trade: New Evidence From Product-Level Data," Economics Series 2013_8, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  8. Chiswick, Barry R., 2011. "Immigration: High Skilled vs. Low Skilled Labor?," IZA Policy Papers 28, Institute for the Study of Labor (IZA).
  9. Guy Michaels, 2007. "The long term consequences of resource based specialization," LSE Research Online Documents on Economics 3249, London School of Economics and Political Science, LSE Library.
  10. Xiang, Chong, 2007. "New goods and the skill premium," Journal of International Economics, Elsevier, vol. 71(1), pages 133-147, March.
  11. Guy Michaels, 2006. "The Long-Term Consequences of Regional Specialization," CEP Discussion Papers dp0766, Centre for Economic Performance, LSE.
  12. Ariell Reshef, 2008. "Is Technological Change Biased Towards the Unskilled in Services? An Empirical Investigation," 2008 Meeting Papers 235, Society for Economic Dynamics.

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