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International economic activities and the demand for skilled labor: evidence from Brazil and China

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  • Fajnzylber, Pablo
  • Fernandes,Ana Margarida

Abstract

Increases in international economic integration can lead to greater specialization according to comparative advantage, but also to the diffusion of skill-biased technologies. In developing countries characterized by relative abundance of unskilled labor, these factors can have opposite effects on the relative demand for skilled labor. This paper investigates the impact of the use of imported inputs, exports and foreign direct investment on the demand for skilled workers of Brazilian and Chinese manufacturing plants. We find that while in Brazil increased levels of international integration are associated with an increased demand for skilled labor, the opposite is true in China.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3426.

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Date of creation: 01 Oct 2004
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Handle: RePEc:wbk:wbrwps:3426

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Keywords: Environmental Economics&Policies; Work&Working Conditions; Economic Theory&Research; Public Health Promotion; Health Monitoring&Evaluation; Environmental Economics&Policies; Economic Theory&Research; Health Monitoring&Evaluation; Work&Working Conditions; Labor Standards;

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References

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  1. Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November.
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  7. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
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  16. Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April.
  17. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
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Citations

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Cited by:
  1. Elena Meschi & Erol Taymaz & Marco Vivarelli, 2009. "Trade, Technology and Skills: Evidence from Turkish Microdata," Jena Economic Research Papers 2009-097, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Crespi, Gustavo & Tacsir, Ezequiel, 2011. "Effects of innovation on employment in Latin America," MPRA Paper 35429, University Library of Munich, Germany.
  3. Carlos Medina & Christian Manuel Posso Suárez, 2010. "Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico," BORRADORES DE ECONOMIA 007269, BANCO DE LA REPÚBLICA.
  4. repec:idb:brikps:60318 is not listed on IDEAS
  5. Meschi, Elena & Vivarelli, Marco, 2009. "Trade and Income Inequality in Developing Countries," World Development, Elsevier, vol. 37(2), pages 287-302, February.
  6. Meschi, Elena & Vivarelli, Marco, 2007. "Globalization and Income Inequality," IZA Discussion Papers 2958, Institute for the Study of Labor (IZA).
  7. World Bank & National Research University – Higher School of Economics, 2013. "Developing Skills for Innovative Growth in the Russian Federation," World Bank Other Operational Studies 16100, The World Bank.
  8. Rita K. Almeida, 2010. "Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?," Asia Pacific Trade and Investment Review, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 17(1), pages 63-95, June.
  9. repec:idb:brikps:58378 is not listed on IDEAS

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