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Understanding Demand For Skills Aftertechnological Trade Liberalization

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  • BRUNO FUNCHAL
  • JADIR SOARES JUNIOR

Abstract

This paper investigates the effects of the reduction of barriers to trade in the computer technology sector on the Brazilian labor market. We show that the adoption of computers affected labor demand in favor of non-routine tasks, which are complementary to labor, as opposed to routine ones, which are substitutes. Using the end of the non-tariff barriers in Brazil ("Informatics Law") as an instrument, and relying on detailed information on sectors and occupations, we found evidence that industries and occupations intensive in computer use displayed greater shifts toward non-routine and away from routine tasks for most educational group and genders.
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Suggested Citation

  • Bruno Funchal & Jadir Soares Junior, 2014. "Understanding Demand For Skills Aftertechnological Trade Liberalization," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 230, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
  • Handle: RePEc:anp:en2012:230
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