Globalization and Employment: Imported Skill Biased Technological Change in Developing Countries
Andrea Conte () and
Marco Vivarelli ()
No 2797, IZA Discussion Papers from Institute of Labor Economics (IZA)
This paper discusses the occurrence of Skill-Enhancing Technology Import (SETI), namely the relationship between imports of embodied technology and widening skill-based employment differentials in a sample of low and middle income countries (LMICs). In doing so, this paper provides a direct measure of technology transfer at the sector level from high income countries (HICs), namely those economies which have already experienced the occurrence of skill-biased technological change, to LMICs. GMM techniques are applied to an original panel dataset comprising 28 manufacturing sectors for 23 countries over a decade. Econometric results provide robust evidence of the determinants of widening employment differentials in LMICs. In particular, capital-skill complementarity represents a source of relative skill-bias while SETI provides an absolute skill-bias effect on the employment trends of skilled and unskilled workers witnessed in these countries.
Keywords: world trade analyzer; general industrial statistics; skill biased technological change; capital skill complementarity; GMM estimation (search for similar items in EconPapers)
JEL-codes: F16 J23 J24 O33 (search for similar items in EconPapers)
Pages: 41 pages
New Economics Papers: this item is included in nep-dev, nep-int, nep-lab, nep-lam and nep-tid
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Published in: Developing Economies, 2011, 49(1), 36-65
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Working Paper: Globalization and Employment: Imported Skill Biased Technological Change in Developing Countries (2007)
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