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Explaining the Occupational Structure of Dutch Sectors of Industry, 1988-2003

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Author Info
Cörvers Frank
Dupuy Arnaud (ROA wp)

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Abstract

We develop a new model to explain the occupational structure of Dutchsectors of industry. The non-homothetic production function we use takesaccount of capital-skill complementarities, skill-biased technological changeand the interaction between labour demand and supply.We estimate the structural parameters of the model for the periodbetween 1988 and 2003 using system dynamic OLS techniques to accountfor the employment dynamic dependence across occupations and sectors ofindustry. The employment series by occupation and sector have both a longrun and a short-run relationship with value added, capital and R&D. Theshort run dynamics can further be decomposed into intra and intersectoraldynamics.We find that both the long run and short run relationships explaina significant part of employment by occupation and sector of industry.Moreover, employment by occupation and sector is significantly affectedby both the intra- and intersectoral dynamics.JEL Classification: J21, J23.Keywords: Labour demand, Occupational structure, Skill-biased technologicalchange, Capital-skill complementarity.

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Paper provided by Maastricht : ROA,Research Centre for Education and the Labour Market in its series Working Papers with number 005.

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Date of creation: 2006
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Handle: RePEc:dgr:umarow:2006005

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Keywords: Economics ;

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  1. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," Harvard Institute of Economic Research Working Papers 1719, Harvard - Institute of Economic Research.
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  3. Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November. [Downloadable!] (restricted)
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  4. Timothy Dunne & John Haltiwanger & Lucia Foster, 2000. "Wage and Productivity Dispersion in U.S. Manufacturing: The Role of Computer Investment," NBER Working Papers 7465, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
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  6. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-97, November. [Downloadable!] (restricted)
  7. Nelson C. Mark & Masao Ogaki & Donggyu Sul, 2003. "Dynamic Seemingly Unrelated Cointegrating Regression," NBER Technical Working Papers 0292, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Dupuy, Arnaud & de Grip, Andries, 2006. "Elasticity of substitution and productivity, capital and skill intensity differences across firms," Economics Letters, Elsevier, vol. 90(3), pages 340-347, March. [Downloadable!] (restricted)
  9. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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