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Equipment Investment and the Relative Demand for Skilled Labour: International Evidence

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  • Flug, K.
  • Hercowitz, Z.

Abstract

The effects of equipment investment on relative wages and employment of skilled labor are estimated. The basic hypothesis is that such effecst are positive, due to the presence of either equipment-skill complementarity or skill advantage in technology adoption. Using a panel data set for a wide range of countries, the relative wage and relative employment of skilled workers are regressed on lagged investment in machinery and other relevant variables.

Suggested Citation

  • Flug, K. & Hercowitz, Z., 1998. "Equipment Investment and the Relative Demand for Skilled Labour: International Evidence," Papers 05-98, Tel Aviv.
  • Handle: RePEc:fth:teavfo:05-98
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    More about this item

    Keywords

    INVESTMENTS ; SKILLED WORKERS;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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