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.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Maastricht : ROA,Research Centre for Education and the Labour Market in its series Working Papers with number
005.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: