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

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  • Kjell G. Salvanes
  • Svein Erik F¯rre

Abstract

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.

Suggested Citation

  • Kjell G. Salvanes & Svein Erik F¯rre, 2003. "Effects on Employment of Trade and Technical Change: Evidence from Norway," Economica, London School of Economics and Political Science, vol. 70(278), pages 293-329, May.
  • Handle: RePEc:bla:econom:v:70:y:2003:i:278:p:293-329
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    Cited by:

    1. Gartell, Marie & Jans, Ann-Christin & Persson, Helena, 2010. "The importance of education for the reallocation of labor: Evidence from Swedish linked employer-employee data 1986-2002," Labour Economics, Elsevier, vol. 17(1), pages 206-214, January.
    2. Savita Bhat & N S Siddharthan, 2010. "Human Capital, Labour Productivity and Employment," Working Papers id:3110, eSocialSciences.
    3. Nurmi, Satu, 2004. "Employment Dynamics and Openness to Trade in Finnish Manufacturing," Discussion Papers 956, The Research Institute of the Finnish Economy.
    4. Frank Cörvers & Jaanika Meriküll, 2007. "Occupational structures across 25 EU countries: the importance of industry structure and technology in old and new EU countries," Economic Change and Restructuring, Springer, vol. 40(4), pages 327-359, December.
    5. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
    6. Torbjørn Hægeland & Dag Rønningen & Kjell G. Salvanes, 2007. "Adapt or withdraw? Evidence on technological changes and early retirement using matched worker-firm data," Discussion Papers 509, Statistics Norway, Research Department.
    7. Roger Bjørnstad & Terje Skjerpen, 2003. "Technology, Trade and Inequality," Discussion Papers 364, Statistics Norway, Research Department.
    8. Bjornstad, Roger & Skjerpen, Terje, 2006. "Trade and inequality in wages and unemployment," Economic Modelling, Elsevier, vol. 23(1), pages 20-44, January.
    9. Carlos Henrique Corseuil & Hidehiko Ichimura, 2006. "New Evidences on What Job Creation and Job Destruction Represent," Discussion papers 06023, Research Institute of Economy, Trade and Industry (RIETI).
    10. Michael Rosholm & Marianne Røed & Pål Schøne, 2013. "Are new work practices and new technologies biased against immigrant workers?," International Journal of Manpower, Emerald Group Publishing, vol. 34(8), pages 995-1014, November.
    11. Spyros Arvanitis & Euripidis N. Loukis, 2009. "Employee education, information and communication technology, workplace organization and trade," KOF Working papers 09-234, KOF Swiss Economic Institute, ETH Zurich.

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