Andrea Conte (University of Turin and Max Planck Institute of Economics Jena) Marco Vivarelli () (Catholic University of Milan, CSGR Warwick, Max Planck Institute of Economics Jena and IZA)
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This 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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
2797.
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