IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Skill mix and technology in Spain: evidence from firm level data

  • Adela Luque

    ()

    (The Urban Institute and Center for Economic Studies, U.S. Census Bureau)

Registered author(s):

    Like businesses in other developed countries, Spanish firms increased the share of skilled workers they employed during the 1990s. This paper attempts to examine whether this change in the Spanish labor market can be attributed to demand shifts or to skill biased technological change. It finds, just as in the US, that skill biased technological change is a more likely hypothesis. Using a type of decomposition methodology, I find that the increase in aggregate skill mix comes mainly from continuing firms increasing their labor skill mixes –presumably in response to the re tooling or upgrades in technology in these firms–. Unlike the findings in the US, my results indicate that the increase in aggregate skill mix in Spain seems to be procyclical. Going further, I also perform sub decompositions that categorize firms according to dimensions that reflect the "idiosyncrasies" of Spain's labor market; in particular the use of permanent vs. temporary contracts. The results support the idea that temporary worker contracts may be lending flexibility to the labor market as policymakers intended. Finally, I examine the dynamics of skill mix changes according to the firms' rate of technological innovation. The results show that the most innovative firms account for the majority of the increase in skill mix during the 1990s in Spain, a finding that support the skill biased technological change hypothesis.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/05/Fic/dt0513e.pdf
    File Function: First version, May 2005
    Download Restriction: no

    Paper provided by Banco de España & Working Papers Homepage in its series Working Papers with number 0513.

    as
    in new window

    Length: 33 pages
    Date of creation: May 2005
    Date of revision:
    Handle: RePEc:bde:wpaper:0513
    Contact details of provider: Web page: http://www.bde.es/

    Web page: http://www.bde.es/bde/en/secciones/informes/Publicaciones_se/docs/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Angel de la Fuente & Juan Francisco Jimeno, 2004. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," UFAE and IAE Working Papers 635.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Ana del Río & Garry Young, 2005. "The determinants of unsecured borrowing: evidence from the British household panel survey," Working Papers 0511, Banco de España;Working Papers Homepage.
    3. Ana Del-Rí­o & Garry Young, 2005. "The impact of unsecured debt on financial distress among British households," Bank of England working papers 262, Bank of England.
    4. Miguel Casares, 2004. "On monetary policy rules for the euro area," Working Papers 0415, Banco de España;Working Papers Homepage.
    5. Vítor Gaspar & Gabriel Pérez-Quirós & Hugo Rodríguez Mendizábal, 2004. "Interest rate determination in the interbank market," Working Papers 0407, Banco de España;Working Papers Homepage.
    6. Eva Ortega, 2003. "Persistent inflation differentials in Europe," Working Papers 0305, Banco de España;Working Papers Homepage.
    7. Enrique Alberola & Luis Molina, 2005. "What Does Really Discipline Fiscal Policy In Emerging Markets? The Role And Dynamics Of Exchange Rate Regimes," International Finance 0507003, EconWPA.
    8. Pilar Bengoechea & Gabriel Pérez-Quirós, 2004. "A useful tool to identify recessions in the euro-area," Working Papers 0419, Banco de España;Working Papers Homepage.
    9. Canova, Fabio & Ciccarelli, Matteo & Ortega, Eva, 2004. "Similarities and convergence in G-7 cycles," Working Paper Series 0312, European Central Bank.
    10. Maximo Camacho & Gabriel Perez-Quiros, 2004. "Are European business cycles close enough to be just one?," Computing in Economics and Finance 2004 16, Society for Computational Economics.
    11. Javier Andrés & Rafael Doménech, 2006. "Fiscal Rules and Macroeconomic Stability," Hacienda Pública Española, IEF, vol. 176(1), pages 9-41, April.
    12. Camacho Maximo & Perez Quiros Gabriel, 2007. "Jump-and-Rest Effect of U.S. Business Cycles," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 11(4), pages 1-39, December.
    13. Javier Andres & J. David López-Salido & Edward Nelson, 2004. "Tobin's imperfect asset substitution in optimizing general equilibrium," Working Papers 2004-003, Federal Reserve Bank of St. Louis.
    14. Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan F, 2005. "Dual Employment Protection Legislation: A Framework for Analysis," CEPR Discussion Papers 5033, C.E.P.R. Discussion Papers.
    15. Álvarez, Luis J. & Hernando, Ignacio, 2004. "Price setting behaviour in Spain: stylised facts using consumer price micro data," Working Paper Series 0416, European Central Bank.
    16. Andrew Benito & Francisco Javier Delgado & Jorge Martínez Pagés, 2004. "A synthetic indicator of financial pressure for spanish firms," Working Papers 0411, Banco de España;Working Papers Homepage.
    17. Luis J. Álvarez & Pablo Burriel & Ignacio Hernando, 2005. "Do decreasing hazard functions for price changes make any sense?," Working Papers 0508, Banco de España;Working Papers Homepage.
    18. Marta Manrique & José Manuel Marqués, 2004. "An empirical approximation of the natural rate of interest and potential growth," Working Papers 0416, Banco de España;Working Papers Homepage.
    19. Enrique Alberola & Humberto López & Luis Servén, 2004. "Tango with the gringo: the hard peg and real misalign ment in Argentina," Working Papers 0405, Banco de España;Working Papers Homepage.
    20. Alicia Garcia Herrero & Alvaro Ortiz, 2005. "The Role Of Global Risk Aversion In Explaining Latin American Sovereign Spreads," International Finance 0503005, EconWPA.
    21. Juan Carlos Berganza & Alicia García-Herrero, 2004. "What makes balance sheet effects detrimental for the country risk premium?," Working Papers 0423, Banco de España;Working Papers Homepage.
    22. Juan Carlos Berganza & Roberto Chang & Alicia García Herrero, 2003. "Balance sheet effects and the country risk premium: an empirical investigation," Working Papers 0316, Banco de España;Working Papers Homepage.
    23. jerome henry & sandro momigliano & pablo hernandez de cos, 2005. "The short-term impact of government budgets on prices Evidence from macroeconometric models," Macroeconomics 0501020, EconWPA.
    24. Rafael Gómez & Pablo Hernández de Cos, 2003. "Demographic Maturity and Economic Performance: The Effect of Demographic Transitions on Per Capita GDP Growth," Working Papers 0318, Banco de España;Working Papers Homepage.
    25. Roberto Blanco & Simon Brennan & Ian W Marsh, 2004. "An empirical analysis of the dynamic relationship between investment-grade bonds and credit default swaps," Bank of England working papers 211, Bank of England.
    26. Berben, Robert-Paul & Locarno, Alberto & Morgan, Julian & Vallés, Javier, 2004. "Cross-country differences in monetary policy transmission," Working Paper Series 0400, European Central Bank.
    27. Javier Andrés & Eva Ortega & Javier Vallés, 2003. "Market structure and inflation differentials in the European Monetary Union," Working Papers 0301, Banco de España;Working Papers Homepage.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bde:wpaper:0513. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (María Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de España)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.