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The Demand of Heterogeneous Labour in Germany

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  • Falk, Martin
  • Koebel, Bertrand M.

Abstract

In this paper, four commonly provided explanations for the shift in labour demand for different skill groups are investigated: the substitutability of inputs; the own-price sensitivity for different types of labour; the effect of economic growth and the impact of technological change. In general, the shift of demand away from unskilled labour can be explained by the large own-price elasticity of unskilled labour and by biased technological change. During the period of 19771994, the rate of biased technological progress against unskilled workers seems to be as large in the traded as in the non-traded goods industries. Furthermore, in three out of five sectors considered, technological change is biased towards high-skilled labour. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 97-28.

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Date of creation: 1997
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Handle: RePEc:zbw:zewdip:9728

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Keywords: technological change; heterogeneous labour;

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  1. Revenga, Ana L, 1992. "Exporting Jobs? The Impact of Import Competition on Employment and Wages in U.S. Manufacturing," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(1), pages 255-84, February.
  2. DREZE, Jacques H. & SNEESSENS, Henri, 1994. "Technical Development, Competition from Low-Wage Economies and Low-Skilled Unemployment," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1994036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. 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.
  4. Shadman-Mehta, Fatemeh & Sneessens, Henri R., 1995. "Skill Demand and Factor Substitution," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1279, C.E.P.R. Discussion Papers.
  5. Basu, Susanto & Fernald, John G, 1997. "Returns to Scale in U.S. Production: Estimates and Implications," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 105(2), pages 249-83, April.
  6. Julian R. Betts, 1997. "The Skill Bias Of Technological Change In Canadian Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 146-150, February.
  7. Stephen Machin & A Ryan & John Van Reenen, 1996. "Technology and Changes in Skill Structure: Evidence from an International Panel of Industries," CEP Discussion Papers dp0297, Centre for Economic Performance, LSE.
  8. Felix Fitzroy & Michael Funke, 1994. "Capital-Skill Complementarity in West German Manufacturing," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 9408, Centre for Research into Industry, Enterprise, Finance and the Firm.
  9. W. Erwin Diewert & T.J. Wales, 1989. "Flexible Functional Forms and Global Curvature Conditions," NBER Technical Working Papers 0040, National Bureau of Economic Research, Inc.
  10. Michael Funke & Felix FitzRoy, 1995. "Skills, Wages, and Employment in East and West Germany," IMF Working Papers 95/4, International Monetary Fund.
  11. SNEESSENS, Henri R. & SHADMAN-MEHTA, Fatemeh, 1994. "Real Wages, Skill Mismatch and Unemployment Persistence," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1994050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  12. Koebel, Bertrand M., 1996. "Tests of representative firm models: results for German manufacturing industries," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 96-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. repec:fth:louvco:9436 is not listed on IDEAS
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