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Imported Inputs and Skill Upgrading

  • Rosario Crinò


    (University of Brescia, Centro Studi Luca d\'Agliano and IAE-CSIC)

This paper studies the effect of imported inputs on relative skilled labor demand. To this purpose, it uses firm-level data for 27 transition countries and propensity score matching techniques. The results show that importing inputs induces skill upgrading: according to a conservative estimate, it explains roughly one-quarter of the higher share of skilled employment observed at importers. The paper discusses possible mechanisms behind this result. In particular, it reports suggestive evidence that importing may lead firms to engage in skill-intensive activities, such as production of new goods, improvements in product quality and, to a lesser extent, R&D and technology adoption.

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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 323.

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Length: 44
Date of creation: 27 Dec 2011
Date of revision: 27 Dec 2011
Handle: RePEc:csl:devewp:323
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