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Working on the Train: Technology, Trade and Wages in Italian Manufacturing

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  • Paolo Manasse

    ()
    (Department of Economics, University of Bologna)

  • Luca Stanca

    ()
    (Department of Economics, University of Milan-Bicocca)

Abstract

This paper investigates the increase in demand for non-manual workers in Italian manufacturing during the 1990s. We find that within-firm skill upgrading is the main determinant of this shift in demand, whereas the reallocation of employment across firms reduces the relative demand for skills. Although the adjustment of skill premia is relatively small when referred to annual wages,hourly wage premia and skill intensity reveal substantial and offsetting contributions to wage responses. Within-firm skill upgrading is strongly and significantly related to investment in computers and R&D, suggesting skill biased technical change as the main explanation of the increase in the relative demand for non-manual workers.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper61.pdf
File Function: First version, 2002
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Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 61.

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Length: 46 pages
Date of creation: Nov 2002
Date of revision: Nov 2002
Handle: RePEc:mib:wpaper:61

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Cited by:
  1. Anna M. Falzoni & Alessandra Venturini & Claudia Villosio, 2004. "Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996," Development Working Papers 190, Centro Studi Luca d\'Agliano, University of Milano.

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