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Technological Change and Outsourcing: Competing or Complementary Explanations for the Rising Demand for Skills during the 1980s?

Anton Tchipev

Quaderni della facoltà di Scienze economiche dell'Università di Lugano from USI Università della Svizzera italiana

Abstract: This paper combines two of the popular approaches used in the trade versus technology debate: the factor content approach and the cost-share regression across manufacturing industries. The resulting method allows to decompose skill upgrading at the industry level into a component attributed to outsourcing and a residual. Surprisingly, computer investment explains the component attributed to outsourcing better than the residual suggesting that technological change may have contributed to higher disintegration of production already during the 1980s.

Keywords: wage inequality; technological change; intermediate products; outsourcing; factor content (search for similar items in EconPapers)
JEL-codes: F16 J31 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2006-12-18
New Economics Papers: this item is included in nep-bec, nep-his and nep-int
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