Technological Change and Outsourcing: Competing or Complementary Explanations for the Rising Demand for Skills during the 1980s?
AbstractThis paper combines two of the popular approaches used in the trade versus technology debate: the factor content approach and the cost-share regression across manufacturing industries. The resulting method allows to decompose skill upgrading at the industry level into a component attributed to outsourcing and a residual. Surprisingly, computer investment explains the component attributed to outsourcing better than the residual suggesting that technological change may have contributed to higher disintegration of production already during the 1980s.
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Bibliographic InfoPaper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 0609.
Length: 49 pages
Date of creation: 18 Dec 2006
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wage inequality; technological change; intermediate products; outsourcing; factor content;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-14 (All new papers)
- NEP-BEC-2007-01-14 (Business Economics)
- NEP-HIS-2007-01-14 (Business, Economic & Financial History)
- NEP-INT-2007-01-14 (International Trade)
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