Working on the Train? The Role of Technical Progress and Trade in Explaining Wage Differentials in Italian Firms
AbstractThis paper presents firm- level evidence on the dynamics of the relative demand for non-manual workers in Italian manufacturing during the 1990s. The analysis provides a number of interesting results. First, within-firm skill upgrading is the main determinant of the increase in the non-manual wage bill share. By contrast, demand changes associated to trade have shifted employment away from skill-intensive firms. Second, while the relative number of hours worked by skilled workers within firms has risen, the hourly wage premium has fallen. Third, within-firm skill upgrading is strongly and significantly related to investment in computers and R&D, suggesting skill-biased technical progress as the main explanation for the increase in the relative demand for non-manual workers. Finally, the paper shows that failing to disaggregate annual wages into the number of hours worked and hourly wages, leads to underestimate the skill-bias of technical progress.
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Bibliographic InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 177.
Date of creation: 01 Dec 2003
Date of revision:
wage differentials; skill bias; technical progress; globalization;
Other versions of this item:
- Paolo Manasse & Luca Stanca, 2003. "Working on the Train? The Role of Technical Progress and Trade in Explaining Wage Differentials in Italian Firms," Working Papers 242, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- F1 - International Economics - - Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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- Susanna Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006.
"Skill dispersion and firm productivity; an analysis with employer-employee matched data,"
Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area
577, Bank of Italy, Economic Research and International Relations Area.
- Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 26(2), pages 247-285, 04.
- S. Iranzo & F. Schivardi & E. Tosetti, 2006. "Skill dispersion and firm productivity: an analysis with employer-employee matched data," Working Paper CRENoS 200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5539, C.E.P.R. Discussion Papers.
- Francesco Serti & Chiara Tomasi & Antonello Zanfei, 2007.
"Exporters, Importers and Two-way Traders: the Links between Internationalization, Skills and Wages,"
Working Papers, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini
0713, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2007.
- Francesco Serti & Chiara Tomasi & Antonello Zanfei, 2008. "Exporters, Importers and Two-way traders: The links between internationalization, skills and wage," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2008/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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