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Skill-biased technological change, international trade and the wage structure

  • Kölling, Arnd
  • Schank, Thorsten

During the last two decades, the labour demand structure in Germany has experienced a decrease in the demand for the low skilled. Possible explanations for this trend are investigated in this study for West Germany (1994- 1997) using a unique linked employer-employee panel data set for Germany. Estimation results of the conditional labour demand for three different skill types indicate that the major part of the skill structure is determined by wages, while we have found only minor impacts of a skill-biased technological change and of international trade.

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Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 14.

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Date of creation: 2002
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Handle: RePEc:zbw:faulre:14
Contact details of provider: Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/

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  14. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
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  17. Michael Funke & Felix FitzRoy, 1995. "Skills, Wages, and Employment in East and West Germany," IMF Working Papers 95/4, International Monetary Fund.
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  19. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
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