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Skill Premium in Chile: Studying Skill Upgrading in the South

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  • Gallego, Francisco A.

Abstract

I study whether the evolution of the relative demand for skilled workers is a consequence of international transmission of skill upgrading technologies from developed countries (in particular the US) to developing ones. Using data for Chile from 1960 to 2000, I present sectoral and macro evidence consistent with this hypothesis and that does not support alternative hypotheses related to trade theories emphasizing the role of price effects, trade in intermediate goods and outsourcing, or competition effects in tradable markets.

Suggested Citation

  • Gallego, Francisco A., 2012. "Skill Premium in Chile: Studying Skill Upgrading in the South," World Development, Elsevier, vol. 40(3), pages 594-609.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:3:p:594-609
    DOI: 10.1016/j.worlddev.2011.07.009
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    More about this item

    Keywords

    wage premium; skill upgrading; trade openness; skill biased technical change; Chile; Latin America;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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