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Skill Biased Technological and Organizational Change: Estimating a Mixed Simultaneous Equation Model Using the IAB Establishment Panel

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Author Info

  • Hujer, Reinhard

    ()
    (Goethe University Frankfurt)

  • Caliendo, Marco

    ()
    (University of Potsdam)

  • Radic, Dubravko

    ()
    (University of Wuppertal)

Abstract

Recent years have brought growing evidence for an increasing labour demand for high skilled and a deterioration of the labour position of less skilled employees. The two most common explanations for this finding are an increasing international trade and a skill biased technological change. Another possible source for this phenomenon, that has received less attention in the recent discussion, are organizational changes that might affect labour demand in an asymmetric way, too. This paper analyses the interdependencies between labour demand for high and low skilled employees, innovation activities and organizational changes. To this aim mixed simultaneous equation models are estimated using the IAB establishment dataset collected by the German Federal Employment Office. Our empirical results indicate that technological change in the form of product innovations increases the demand for high and reduces the demand for low skilled employees. Organizational changes on the other hand do not have any significant effect on the labour demand, but are closely related to innovations.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 566.

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Length: 52 pages
Date of creation: Sep 2002
Date of revision:
Handle: RePEc:iza:izadps:dp566

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Related research

Keywords: mixed simultaneous equation models; labour demand; skilled biased;

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  1. repec:iab:iabzaf:v:39:i:2:p:201-233 is not listed on IDEAS
  2. repec:iab:iabzaf:v:41:i:2/3:p:259-285 is not listed on IDEAS
  3. Bellmann, Lutz & Cornelißen, Thomas & Hübler, Olaf & Pahnke, André, 2008. "Betriebliche Reorganisation, Entlohnung und Beschäftigungsstabilität (Organisational change, wages and job stability)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 259-285.
  4. Addison, John T. & Bellmann, Lutz & Schank, Thorsten & Teixeira, Paulino, 2005. "The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?," IZA Discussion Papers 1780, Institute for the Study of Labor (IZA).
  5. repec:iab:iabmit:v:35:i:4:p:506-522 is not listed on IDEAS
  6. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a mic," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
  7. Bellmann, Lutz & Pahnke, André, 2006. "Auswirkungen organisatorischen Wandels auf die betriebliche Arbeitsnachfrage (Effects of organisational change on firms' demand for labour)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(2), pages 201-233.
  8. Spyros Arvanitis & Euripidis N. Loukis, 2009. "Employee Education, Information and Communication Technology, Workplace Organization and Trade: A Comparative Analysis of Greek and Swiss Enterprises," KOF Working papers 09-234, KOF Swiss Economic Institute, ETH Zurich.

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