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Imported inputs and skill upgrading

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  • Crinò, Rosario

Abstract

This paper studies the effect of imported inputs on the relative demand for high-skill labor. To this purpose, it applies propensity score matching techniques to firm-level data for 27 transition countries. The results show that importing inputs induces skill upgrading. Specifically, it explains more than one-quarter of the unconditional difference between importers and non-importers in the employment share of high-skill workers. The paper explores possible mechanisms behind this result. In particular, it reports suggestive evidence that importing leads firms to engage in high-skill intensive activities, such as production of new goods, improvement of product quality and, to a lesser extent, R&D and technology adoption.

Suggested Citation

  • Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
  • Handle: RePEc:eee:labeco:v:19:y:2012:i:6:p:957-969
    DOI: 10.1016/j.labeco.2012.08.002
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    Cited by:

    1. Irene Iodice & Chiara Tomasi, 2015. "Skill upgrading, wage gap and international trade: firm-level evidence for Italian manufacturing firms," LEM Papers Series 2015/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Bernhard Dachs & Bernd Ebersberger & Steffen Kinkel & Oliver Som, 2015. "The effects of production offshoring on R&D and innovation in the home country," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 9-31, March.
    3. Fritsch, Ursula, 2015. "Is Offshoring Beneficial or Detrimental to Innovation in Developed Countries?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112973, Verein für Socialpolitik / German Economic Association.
    4. Fritsch, Ursula & Görg, Holger, 2013. "Outsourcing, offshoring and innovation: Evidence from firmlevel data for emerging economies," Kiel Working Papers 1861, Kiel Institute for the World Economy (IfW).
    5. Kummritz,Victor & Taglioni,Daria & Winkler,Deborah Elisabeth & Kummritz,Victor & Taglioni,Daria & Winkler,Deborah Elisabeth, 2017. "Economic upgrading through global value chain participation : which policies increase the value added gains ?," Policy Research Working Paper Series 8007, The World Bank.

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    Keywords

    Imported inputs; Relative demand for high-skill labor; Firm-level data; Transition countries; Propensity score matching;

    JEL classification:

    • F1 - International Economics - - Trade

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