Globalization and Employment: Imported Skill Biased Technological Change in Developing Countries
AbstractThis paper discusses the occurrence of Skill-Enhancing Technology Import (SETI), namely the relationship between imports of embodied technology and widening skill-based employment differentials in a sample of low and middle income countries (LMICs). In doing so, this paper provides a direct measure of technology transfer at the sector level from high income countries (HICs), namely those economies which have already experienced the occurrence of skill-biased technological change, to LMICs. GMM techniques are applied to an original panel dataset comprising 28 manufacturing sectors for 23 countries over a decade. Econometric results provide robust evidence of the determinants of widening employment differentials in LMICs. In particular, capital-skill complementarity represents a source of relative skill-bias while SETI provides an absolute skill-bias effect on the employment trends of skilled and unskilled workers witnessed in these countries.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2797.
Length: 41 pages
Date of creation: May 2007
Date of revision:
Publication status: published in: Developing Economies, 2011, 49(1), 36-65
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Other versions of this item:
- Andrea Conte & Marco Vivarelli, 2007. "Globalization and Employment: Imported Skill Biased Technological Change in Developing Countries," Jena Economic Research Papers 2007-009, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-26 (All new papers)
- NEP-DEV-2007-05-26 (Development)
- NEP-INT-2007-05-26 (International Trade)
- NEP-LAB-2007-05-26 (Labour Economics)
- NEP-LAM-2007-05-26 (Central & South America)
- NEP-TID-2007-05-26 (Technology & Industrial Dynamics)
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2010_22, Business School - Economics, University of Glasgow.
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- Meschi, Elena & Vivarelli, Marco, 2009. "Trade and Income Inequality in Developing Countries," World Development, Elsevier, vol. 37(2), pages 287-302, February.
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