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Effects on Employment of Trade and Technical Change: Evidence from Norway

  • Kjell G. Salvanes
  • Svein Erik F¯rre

Trade and technology-related explanations for the change in plant-level skill composition in Norway are examined by exploiting matched employer-employee data. The results show that the changes are taking place mainly through a reallocation of labour resources between plants within sectors, leading to greater dispersion of skills across establishments. Results from estimating plant-level dynamic demand functions support skill-biased technological change via a positive gross job creation effect. A strong impact from trade is also found along the gross job destruction margin for low- and medium-educated workers in sectors exposed to increased competition from abroad. Highly educated workers are insulated from negative trade effects. Copyright The London School of Economics and Political Science 2003.

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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 70 (2003)
Issue (Month): 278 (05)
Pages: 293-329

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Handle: RePEc:bla:econom:v:70:y:2003:i:278:p:293-329
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