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Imported inputs and skill upgrading

Rosario Crino ()

Labour Economics, 2012, vol. 19, issue 6, 957-969

Abstract: This paper studies the effect of imported inputs on the relative demand for high-skill labor. To this purpose, it applies propensity score matching techniques to firm-level data for 27 transition countries. The results show that importing inputs induces skill upgrading. Specifically, it explains more than one-quarter of the unconditional difference between importers and non-importers in the employment share of high-skill workers. The paper explores possible mechanisms behind this result. In particular, it reports suggestive evidence that importing leads firms to engage in high-skill intensive activities, such as production of new goods, improvement of product quality and, to a lesser extent, R&D and technology adoption.

Keywords: Imported inputs; Relative demand for high-skill labor; Firm-level data; Transition countries; Propensity score matching (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2012
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Working Paper: Imported Inputs and Skill Upgrading (2011) Downloads
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