Employment Occupational Structure, Technological Capital and Reorganization of Production

Victor Aguirregabiria () and César Alonso-Borrego
Authors registered in the RePEc Author Service: Dan Black and Jeffrey Andrew Smith

No 9703, University of Western Ontario, Departmental Research Report Series from University of Western Ontario, Department of Economics

Abstract: This paper analyzes the role of skill-biased technological progress on the recent changes in the occupational structure of Spanish manufacturing employment. Our dataset consists of a panel of Spanish manufacturing firms during the period 1986-1991. We confirm a puzzle that has been found in other OECD countries: investment in capital inputs is clearly procyclical, but destruction of unskilled jobs and creation of skilled jobs have been concentrated during the recession. However, we also find that the number of firms who invest by first time in technological capital has been clearly countercyclical. Based on this evidence, we estimate a dynamic model where firms take discrete decisions about what labor and capital inputs to use, and continuous decisions on the amount of each selected input. After controlling for individual heterogeneity and self-selection we find that these two decisions have different effects on occupational structure. In particular, we find that for new innovative firms the introduction of technological capital has significant and sizeable effects on the occupational structure of employment.

Keywords: ECONOMETRIC MODELS; EMPLOYMENT; LABOUR FORCE; LABOUR MARKET; PRODUCTION (search for similar items in EconPapers)
JEL-codes: C33 J21 J44 L23 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (10)

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Working Paper: Employment occupational structure, technological capital and reorganization of production (1997)
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