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The Long-Run Demand for Skilled and Unskilled Labor in Colombian Manufacturing Plants

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  • Mark J. Roberts
  • Emmanuel Skoufias

Abstract

This note estimates the long-run demand for skilled and unskilled labor using panel data for Colombian manufacturing plants. Unobserved heterogeneity and measurement error problems that commonly arise in microdata production estimates are examined. Output measurement errors cause OLS estimators to underestimate the output and wage response of employment demand. Time-difference estimators exaggerate the measurement error biases. Instrumental-variable estimates of the output elasticities are 0.89 and 0.76 and own-wage elasticities are -0.42 and -0.65 for skilled and unskilled labor, respectively. The output elasticity is larger for skilled labor whereas the wage elasticity is larger for unskilled labor in virtually every industry. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Mark J. Roberts & Emmanuel Skoufias, 1997. "The Long-Run Demand for Skilled and Unskilled Labor in Colombian Manufacturing Plants," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 330-334, May.
  • Handle: RePEc:tpr:restat:v:79:y:1997:i:2:p:330-334
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    Cited by:

    1. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitability enhancing reallocation: evidence from Colombia," Journal of Development Economics, Elsevier, vol. 75(2), pages 333-371, December.
    2. Jorge Andrés Tamayo Castaño, 2012. "Asimetrías en la demanda por trabajo en Colombia: el papel del ciclo económico," Borradores de Economia 689, Banco de la Republica de Colombia.
    3. Bos Jaap W.B. & Stam Erik, 2011. "Gazelles, Industry Growth and Structural Change," Research Memorandum 018, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2859-2939 is not listed on IDEAS
    5. repec:ibn:ijefaa:v:9:y:2017:i:9:p:83-93 is not listed on IDEAS
    6. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitabality enhancing reallocation: evidence from Colombia," Discussion Paper Series In Economics And Econometrics 0408, Economics Division, School of Social Sciences, University of Southampton.
    7. Giovanna Aguilar & Sílvio Rendon, 2010. "Employment And Deadweight Loss Effects Of Observed Nonwage Labor Costs," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 793-809, July.
    8. Agenor, Pierre-Richard & Pizzati, Lodovico, 2005. "Disinflation and the supply side," Journal of Macroeconomics, Elsevier, vol. 27(4), pages 596-620, December.
    9. James J. Heckman & Carmen Pagés, 2004. "Introduction to "Law and Employment: Lessons from Latin American and the Caribbean"," NBER Chapters,in: Law and Employment: Lessons from Latin America and the Caribbean, pages 1-108 National Bureau of Economic Research, Inc.
    10. Carlos Medina & Christian M. Posso & Jorge A.Tamayo & Emma Monsalve, 2012. "Dinámica de la Demanda Laboral en la Industria Manufacturera Colombiana 1993-2009: una Estimación Panel VAR," BORRADORES DE ECONOMIA 009372, BANCO DE LA REPÚBLICA.
    11. Noel Gaston & Ahmed M. Khalid (ed.), 2010. "Globalization and Economic Integration," Books, Edward Elgar Publishing, number 13767.
    12. Nobuaki Yamashita & Kyoji Fukao, 2010. "The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises," Chapters,in: Globalization and Economic Integration, chapter 12 Edward Elgar Publishing.
    13. Jairo Guillermo Isaza Castro & Carlos Arturo Meza Carvajalino, 2004. "La demanda de trabajo:Aspectos teóricos y evidencia empírica para Colombia," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA 002965, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
    14. Rodríguez, Jesús, 2013. "Determinantes de la demanda de empleo en el sector manufacturero colombiano, 2000-2010," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, issue 79, pages 45-79, June.
    15. Teal, Francis, 2000. "Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995," Journal of Development Economics, Elsevier, vol. 61(2), pages 447-461, April.
    16. Luis E. Arango & Francesca Castellani & Nataly Obando, 2016. "It is mainly about where you work! Labor demand in the Colombian manufacturing sector," Borradores de Economia 933, Banco de la Republica de Colombia.
    17. Agenor, Pierre-Richard, 2001. "Employment effects of stabilization policies," European Journal of Political Economy, Elsevier, vol. 17(4), pages 853-875, November.
    18. Maribel Castillo Caicedo & Geovanny Castro Aristizabal & Diana Marcela Escandón Barbosa, 2010. "Demanda laboral de profesionales en ciencias económicas, administrativas e ingeniería en Cali 2009: ¿van de la mano el capital humano y la señalización?," Investigaciones de Economía de la Educación volume 5,in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Gregorio Gim (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 42, pages 825-846 Asociación de Economía de la Educación.
    19. Ernesto Friedrich de Lima Amaral & Joseph E. Potter & Daniel Hamermesh & Eduardo Rios-Neto, 2013. "Age, education, and earnings in the course of Brazilian development: Does composition matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(20), pages 581-612, March.

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