The loss of production work: evidence from quasi-experimental identification of labour demand functions

Elias Einiö

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: This paper examines changes in the structure of labour demand in plant-level panel data. I exploit variation in wages across local labour markets induced by the collapse of Finland's Soviet-dependent industry in the early 1990s to identify a labour demand model for plants producing for non-Soviet markets, which were not directly affected by the Soviet shock. I find a labour demand shift against workers in production occupations which accelerates in the 2000s, when industry patterns begin to diverge. Industry heterogeneity suggests that variation in industry structure may partly explain the differential development of wages and employment across countries.

Keywords: labour demand function; occupation; offshoring; manufacturing; panel data; production work; technical change (search for similar items in EconPapers)
JEL-codes: F16 J23 J24 O33 (search for similar items in EconPapers)
Date: 2016-10-10
New Economics Papers: this item is included in nep-cis, nep-his and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1451

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