Technology and the Demand for Skill:An Analysis of Within and Between Firm Differences
John Abowd (),
John Haltiwanger,
Julia Lane,
Kevin McKinney and
Kristin Sandusky
No 13043, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
We estimate the effects of technology investments on the demand for skilled workers using longitudinally integrated employer-employee data from the U.S. Census Bureau's Longitudinal Employer-Household Dynamics Program infrastructure files spanning two Economic Censuses (1992 and 1997). We estimate the distribution of human capital and its observable and unobservable components within each business for each year from 1992 to 1997. We measure technology using variables from the Annual Survey of Manufactures and the Business Expenditures Survey (services, wholesale and retail trade), both administered during the 1992 Economic Census. Static and partial adjustment models are fit. There is a strong positive empirical relationship between advanced technology and skill in a cross-sectional analysis of businesses in both sectors. The more comprehensive measures of skill reveal that advanced technology interacts with each component of skill quite differently: firms that use advanced technology are more likely to use high-ability workers, but less likely to use high-experience workers. These results hold even when we control for unobservable heterogeneity by means of a selection correction and by using a partial adjustment specification.
JEL-codes: J23 J24 O33 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-bec and nep-ino
Note: EFG LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (65)
Downloads: (external link)
http://www.nber.org/papers/w13043.pdf (application/pdf)
Related works:
Working Paper: Technology and the Demand for Skill: An Analysis of Within and Between Firm Differences (2007) 
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:nbr:nberwo:13043
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w13043
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().