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Accounting for technology, trade and final consumption in employment: an Input-Output decomposition

Listed author(s):
  • M. PAK

    (Insee)

  • A. POISSONNIER

    (Insee)

What are the driving forces of changes in employment in France over the last thirty years and how can we explain skill-biased changes in employment? Based on Input-Output analysis we provide a decomposition of changes in employment between the contributions of three channels : technology, trade and final consumption. Our goal is to assess these contributions to employment changes by skill level over the period 1982-2010. Our analysis builds on textbook methodologies of structural decomposition, but innovative data: INSEEs Input-Output tables both in current and previous year prices, based on the new ESA2010 concepts. Our main findings are that technology shows marked skill-bias, whereas trade and final consumption have limited skill-bias effects. The development of high-technology manufacturing and R&D over the last thirty years mainly contributes to this skill-biased change in employment. We find a positive contribution of trade to employment at every skill level.

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File URL: https://www.insee.fr/en/statistiques/fichier/2563499/G2016-11.pdf
File Function: Document de travail de la DESE numéro G2016-11
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Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2016-11.

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Date of creation: 2016
Handle: RePEc:crs:wpdeee:g2016-11
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