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Technology and skill demand in Mexico

Author

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  • Lopez-Acevedo, Gladys

Abstract

The author investigates the effects of technology on the employment and wages of differently skilled Mexican manufacturing workers using firm panel data from 1992-99. She analyzes the relationship between technology and skill demand. Findings support the skill-biased technical change hypothesis. She then examines the temporal relationship of technology adoption to firm productivity and worker wages. The author finds that skilled labor increases after technology adoption. And wages of both skilled and semi-skilled workers exhibit markedly increased growth rates compared with the growth rate of low-skilled workers. The results show that investment in human capital improves technology-driven productivity gains.

Suggested Citation

  • Lopez-Acevedo, Gladys, 2002. "Technology and skill demand in Mexico," Policy Research Working Paper Series 2779, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2779
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    References listed on IDEAS

    as
    1. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
    2. Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc.
    3. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
    4. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
    5. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," The World Bank Economic Review, World Bank, vol. 11(1), pages 59-83, January.
    6. Hanson, G.H. & Harrison, A., 1995. "Trade, Technology and Wage Inequality," Papers 95-20, Columbia - Graduate School of Business.
    7. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen E., 1993. "Wage Changes in a U.S.-Mexico Free Trade Area: Migration Versus Stolper-Samuelson Effects," CUDARE Working Papers 249310, University of California, Berkeley, Department of Agricultural and Resource Economics.
    8. Audretsch,David B. & Thurik,Roy (ed.), 1999. "Innovation, Industry Evolution and Employment," Cambridge Books, Cambridge University Press, number 9780521641661.
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    Cited by:

    1. Zuniga, Pluvia & Crespi, Gustavo, 2013. "Innovation strategies and employment in Latin American firms," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 1-17.
    2. Caudillo Sanchez, Francisco, 2006. "Is information and communication technology (ICT) the right strategy for growth in Mexico?," Freiberg Working Papers 2006/17, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.

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