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The Sector Bias of Skill-biased Technical Change and the Rising Skill Premium in Transition Economies

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  • Piero Esposito
  • Robert Stehrer

    ()
    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

In this paper we test the hypothesis that the sector bias of skill-biased technical change is important in explaining the rising relative wage of skilled workers in the manufacturing sector in three Central and Eastern European transition countries. The evidence for Hungary and Poland is consistent with the sector bias being important in explaining the rising wage premium; the hypotheses is however not confirmed for the Czech Republic.

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Bibliographic Info

Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 43.

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Date of creation: May 2007
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Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:43

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Keywords: skill premium; factor prices; biased technical change; transition;

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References

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  1. Lorentowicz, Andzelika & Marin, Dalia & Raubold, Alexander, 2005. "Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5344, C.E.P.R. Discussion Papers.
  2. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 20(4), pages 733-783, October.
  3. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  4. David Autor & Frank Levy & Richard Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, issue Nov.
  5. Berman, E. & Bound, J. & Machin, S., 1997. "Implications of Skill-Biased Technological Change: International Evidence," Papers, Centre for Economic Performance & Institute of Economics 25, Centre for Economic Performance & Institute of Economics.
  6. James A. Kahn & Jong-Soo Lim, 1997. "Skilled labor -- augmenting technical progress in U.S. manufacturing," Research Paper, Federal Reserve Bank of New York 9738, Federal Reserve Bank of New York.
  7. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, Elsevier, vol. 42(3-4), pages 371-393, May.
  8. Peter Egger & Robert Stehrer, . "International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe," WIFO Working Papers, WIFO 151, WIFO.
  9. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 109(2), pages 367-97, May.
  10. Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198290155, October.
  11. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
  12. Michael A. Landesmann & Robert Stehrer, 2002. "Evolving Competitiveness of CEEC’s in an Enlarged Europe," Rivista di Politica Economica, SIPI Spa, SIPI Spa, vol. 92(1), pages 23-88, January-F.
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Citations

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Cited by:
  1. Marco Biagetti & Sergio Scicchitano, 2012. "Returns to Schooling in Europe: Evidence From Quantile Regression on EU-SILC Data," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, ScientificPapers.org, vol. 2(5), pages 9, October.
  2. Guido Cazzavillan & Krzysztof Olszewski, 2009. "Skill-biased technological change and endogenous labor supply in EU Transition Economies and the US," Working Papers 2009_12, Department of Economics, University of Venice "Ca' Foscari".
  3. Alessia LO TURCO & Aleksandra PARTEKA, 2010. "The Demand for Skills and the Labor Cost in Partner Countries: Evidence from the Enlarged EU," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 348, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  4. Eleonora Cavallaro & Piero Esposito & Alessia Matano & Marcella Mulino, 2012. "Technological catching up, quality of exports and competitiveness: a sectoral perspective," Working Papers, University of Rome La Sapienza, Department of Public Economics 158, University of Rome La Sapienza, Department of Public Economics.
  5. Parteka, Aleksandra & Wolszczak-Derlacz, Joanna, 2013. "Integrated Sectors - Diversified Earnings: The (Missing) Impact of Offshoring on Wages and Wage Convergence in the EU27," Institute for Research on Labor and Employment, Working Paper Series, Institute of Industrial Relations, UC Berkeley qt3tm2935j, Institute of Industrial Relations, UC Berkeley.
  6. Éva Polgár & Julia Wörz, 2010. "No risk and some fun? Trade and wages in the enlarged European Union," Empirica, Springer, Springer, vol. 37(2), pages 127-163, May.
  7. Brixiova, Zuzana & Li, Wenli & Yousef, Tarik, 2009. "Skill shortages and labor market outcomes in Central Europe," Economic Systems, Elsevier, Elsevier, vol. 33(1), pages 45-59, March.
  8. Sang-Wook (Stanley) Cho & Juliàn P. Dìaz, 2014. "Accounting for Skill Premium Patterns during the EU Accession: Productivity or Trade?," Discussion Papers, School of Economics, The University of New South Wales 2014-14, School of Economics, The University of New South Wales.
  9. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS
  10. Polgár, Éva Katalin & Wörz, Julia, 2010. "Trade with central and eastern Europe: Is it really a threat to wages in the west?," Working Paper Series, European Central Bank 1244, European Central Bank.
  11. Sami SAAFI, 2009. "Innovations technologiques, mobilité et demande de main-d’oeuvre qualifiée. Une analyse des industries tunisiennes (Technological innovations, mobility and skilled-labour deamnd : an analysis of t," Working Papers, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation 206, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
  12. Alberto Behar, 2013. "The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries," IMF Working Papers 13/50, International Monetary Fund.
  13. Aleksandra Parteka, 2012. "Skilled-Unskilled Wage Gap Versus Evolving Trade And Labour Market Structures in the EU," Working Papers, Instytut Rozwoju, Institute for Development 1204, Instytut Rozwoju, Institute for Development.

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