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Trade in Information Technologies and Changes in the Demand for Occupations

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  • Jerbashian, Vahagn

Abstract

I use data from the World Input-Output Database and show that trade in information technologies (IT) has a significant contribution to the growth in foreign intermediate goods in 2001-2014 period. China has become one of the major foreign suppliers of IT and has strongly contributed to the rise in trade in IT. The growth in IT imports from China is associated with lower IT prices in sample European countries. The fall in IT prices has increased the demand for high wage occupations and reduced the demand for low wage occupations. From 20 to 95 percent of the variation in the demand for occupations stemming from the fall in IT prices can be attributed to the trade with China.

Suggested Citation

  • Jerbashian, Vahagn, 2019. "Trade in Information Technologies and Changes in the Demand for Occupations," GLO Discussion Paper Series 427, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:427
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade; Information Technologies; China; Demand for Occupations;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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