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Technology, Trade, Multinationals and Aggregate Employment: Evidence from UK Panel Data

In: Trade, Investment, Migration and Labour Market Adjustment

Author

Listed:
  • Karl Taylor

    (University of Leicester)

  • Nigel Driffield

    (University of Birmingham)

Abstract

It is now well documented that over the past two decades there has been a substantial increase in the demand for skilled labour (Gottschalk and Smeeding (1997)). Moreover, the majority of such relative increases have occurred within industries and within groups of individuals with the same education and experience (Schmitt (1995); Taylor (1999)). A number of explanations exist which try to give reasons for the demand shock. In particular the two most common in the literature are that of technological change biased in favour of skilled labour and growing international trade (Levy and Murnane (1992); Gottschalk and Smeeding (1997)). There is some disagreement about whether technology or trade is the most important factor in causing increasing demand for skilled workers (Machin and Van Reenen (1998); Wood (1994, 1998); Taylor (1999); Desjonqueres et al. (1999)), and this is as much a theoretical issue as an empirical one (Haskel (1999); Slaughter (1999)). However, it is fair to say that the majority of research has focused upon trade and technology as the main causes of changes in labour demand.

Suggested Citation

  • Karl Taylor & Nigel Driffield, 2002. "Technology, Trade, Multinationals and Aggregate Employment: Evidence from UK Panel Data," International Economic Association Series, in: David Greenaway & Richard Upward & Katharine Wakelin (ed.), Trade, Investment, Migration and Labour Market Adjustment, chapter 11, pages 187-200, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-4039-2018-8_11
    DOI: 10.1057/9781403920188_11
    as

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