Equipment Investment and the Relative Demand for Skilled Labor: International Evidence

Karnit Flug and Zvi Hercowitz ()
Additional contact information
Karnit Flug: Bank of Israel

Review of Economic Dynamics, 2000, vol. 3, issue 3, 461-485

Abstract: The effects of equipment investment on relative wages and employment of skilled labor are estimated. The basic hypothesis is that such effects are positive, due to the presence of either equipment-skill complementarity or skill advantage in technology adoption. Using a panel data set for a wide range of countries, the relative wage and relative employment of skilled workers are regressed on lagged investment in machinery and other relevant variables. The results indicate a positive and strong effect of machinery investment on the relative demand for skilled labor, with the relative wage responding much sooner and for a much shorter time than relative employment. (Copyright: Elsevier)

Keywords: equipment investment; skill premium (search for similar items in EconPapers)
JEL-codes: E24 (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

Downloads: (external link)
http://dx.doi.org/10.1006/redy.1999.0080 Full text (application/pdf)
Access to full texts is restricted to ScienceDirect subscribers and ScienceDirect institutional members. See http://www.sciencedirect.com/ for details.

Related works:
Working Paper: Equipment Investment and the Relative Demand for Skilled Labour: International Evidence (1998)
Working Paper: Equipment Investment and the Relative Demand for Skilled Labor: International Evidence (1996)
Working Paper: Equipment Investment and the Relative Demand for Skilled Labor: International Evidence (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:issued:v:3:y:2000:i:3:p:461-485

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1006/redy.1999.0080

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().