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Accounting for technology, trade and final consumption in employment: an Input-Output decomposition

Mathilde Pak and Aurélien Poissonnier

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: What are the driving forces of changes in employment in France over the last thirty years and how can we explain skill-biased changes in employment? Based on Input-Output analysis we provide a decomposition of changes in employment between the contributions of three channels : technology, trade and final consumption. Our goal is to assess these contributions to employment changes by skill level over the period 1982-2010. Our analysis builds on textbook methodologies of structural decomposition, but innovative data: INSEEs Input-Output tables both in current and previous year prices, based on the new ESA2010 concepts. Our main findings are that technology shows marked skill-bias, whereas trade and final consumption have limited skill-bias effects. The development of high-technology manufacturing and R&D over the last thirty years mainly contributes to this skill-biased change in employment. We find a positive contribution of trade to employment at every skill level.

Keywords: Input-Output analysis; structural decomposition; employment; skill-bias; technology; trade; final consumption (search for similar items in EconPapers)
JEL-codes: C67 D57 F66 J23 J24 O33 (search for similar items in EconPapers)
Date: 2016
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