Imported Skill-Biased Technological Change in Developing Countries

Conte, Andrea; Vivarelli, Marco

doi:10.1111/j.1746-1049.2010.00121.x

Cited by 70 publications

(66 citation statements)

References 71 publications

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“…Imports of capital equipment are considered by some authors, (Conte and Vivarelli, 2007), as a factor underling the rise of the number of educated workers and the decrease of that of the unskilled ones in the developing countries. In Tunisia, for example, they knew remarkable fluctuations during the 2000-2007 period with a steady growth since 2008 ( Figure 3).…”

Section: A Review Of the Tunisian National Potential In Ictmentioning

confidence: 99%

Skill-biased Technological Change, E-skills and Wage Inequality: Evidence from Tunisia

Aissaoui¹,

Hassen²

2016

JESR

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Although there is a plethora of literature that supports the existence of a technological bias in the US and Europe, exploring such a subject in the developing countries is still relevant and very little processed. This article is part of the perspective that involves examining and bringing additional insight to the phenomenon of the technological change skewed in the Tunisian context. Estimating a multinomial logit model directed to 902 employees generated very original results. First, these results confirm the existence of a technological bias in favour of skilled workers in the Tunisian labour market. However, it is no longer the access or the intensive use of ICT at work that privileges some employees and not others, in terms of pay, but rather the employees' digital skills which contribute to rising inequality. Even more, it is the ability to get, select, process and evaluate information based on the specific needs and capacity to use it to achieve specific objectives, and not the simple manipulation of digital technologies and structures, that are at the core of the problem. Finally, the organizational change also contributes to the amplification of the existing wage disparities. Actually, the more independent the employee is in carrying out his tasks and works per project, the higher the probability of earning a high salary vs low and medium salary. However, several other types of organizations do not have any significant positive effect on the wage rise. This reflects a weakness in the labour organization in the Tunisian firms.

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Section: A Review Of the Tunisian National Potential In Ictmentioning

confidence: 99%

Skill-biased Technological Change, E-skills and Wage Inequality: Evidence from Tunisia

Aissaoui¹,

Hassen²

2016

JESR

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“…For example, adopting a cross-country perspective, Meschi and Vivarelli (2009) found that trade flows with more technologically advanced countries worsen income distribution by increasing wage differentials between skilled and unskilled workers. By the same token, Conte and Vivarelli (2011) report evidence of a positive relationship between the imports of industrial machinery, equipment, and ICT capital goods and the demand for skilled labor in low and middleincome countries. Almeida (2009) reaches similar conclusions when studying eight East-Asian middleincome countries, but does not find evidence supporting SBTC in low income countries.…”

Section: Trade and Technological Change In Developing Countriesmentioning

confidence: 99%

“…If we consider two types of labor inputs, namely skilled (white-collars WC) and unskilled (blue-collars BC) and adopt a dynamic specification in order to account for adjustment costs that determine serial correlation in the employment series (see Van Reenen, 1997;Lachenmaier and Rottman, 2011;and Conte and Vivarelli, 2011), our estimating equations of the quantity effect are the following:…”

Section: The Empirical Model: Specification and Econometric Issuesmentioning

confidence: 99%

Globalization, technological change and labor demand: a firm-level analysis for Turkey

2016

Self Cite

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper studies the interlinked relationship between globalization and technological upgrading in affecting employment and wages of skilled and unskilled workers in a middle income developing country. It exploits a unique longitudinal firm-level database that covers all manufacturing firms in Turkey over the 1992-2001 period. Turkey is taken as an example of a developing economy that, in that period, had been technologically advancing and becoming increasingly integrated with the world market. The empirical analysis is performed at firm level within a dynamic framework using a 2+2 equations model that depicts the employment and wage trends for skilled and unskilled workers separately. In particular, the System Generalized Method of Moments (GMM-SYS) procedure is applied to a panel dataset of about 15,000 firms. Our results confirm the theoretical expectation that developing countries face the phenomena of skill-biased technological change and skill-enhancing trade, both leading to increasing the employment and wage gap between skilled and unskilled workers. In particular, a strong evidence of a relative skill bias emerges: both domestic and imported technologies increase the relative demand for skilled workers more than the demand for the unskilled. "Learning by exporting" also appears to have a relative skill biased impact, while FDI imply an absolute skill bias. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: O33

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“…Major portion of the literature identified that higher trade openness increases inequality in the country for example but not limited to (Revenga, 1997;Milner and Wright, 1998;Levinsohn, 1999;Ravallion, 2001;Epifani, 2003;Lundberg and Squire, 2003;Melitz, 2003;Xu, 2003;Khondker and Raihan, 2004;Annabi et al, 2005;Milanovic, 2005;Yeaple, 2005;Bustos, 2007;Conte and Vivarelli, 2007;Meschi and Vivarelli, 2009;Barua and Chakraborty, 2010;Bergh and Nilsson, 2010;Li and Coxhead, 2011;Ezcurra and Rodriguezpose, 2013;Furusawa and Konishi, 2013;Grossman and Helpman, 2014).On the other hand, some studies concluded that trade reduces income inequality (Bourguignon and Morrisson, 1990;Wood, 1995;Calderón and Chong, 2001;Cornia and Kiiski, 2001;Ravallion, 2001;Lundberg and Squire, 2003;Wade, 2004;Milanovic and Squire, 2005;Easterly, 2006;Demir et al, 2012) and some studies found mixed results (Meschi and Vivarelli, 2009;Nissanke and Thorbecke, 2010;Castilho et al, 2012;Perera et al, 2014;Hepenstrick and Tarasov, 2015).…”

Section: Review Of Literaturementioning

confidence: 99%

Trading for SDGs: Trade Liberalization and Human Development in the Emerging Economies

Islam¹,

Fatema²

2017

Asian Development Policy Review

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Article History JEL Classification O50; F63; F14. This study examines the effect of trade liberalization on human development which is the core focus of sustainable development goals (SDGs). It uses trade openness as proxy to trade liberalization and human development index (HDI) as well as its three subindexes namely education, health, and income as indicators of human development. The study focuses on emerging economies as the research sample considering their significance in the world trade and deals with a panel data set of 43 emerging countries for the period of 1995-2014. Due to cross-sectional dependence in the data set DriscollKraay estimator has been applied to the regression models. The effect of trade openness on HDI and its three sub-indexes is identified for all the emerging economies and their three subgroups such as EAGLE, NEST and other emerging countries separately for the robustness of the analysis. The results of the study suggest that higher trade openness significantly progresses human development status in the emerging economies in all aspects. Both human capital accumulation and per capita GDP have a positive impact on human development whereas the effect of GDP growth is negative. The religious and cultural factors show a mixed effect on human development in the emerging economies.

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Imported Skill-Biased Technological Change in Developing Countries

Cited by 70 publications

References 71 publications

Skill-biased Technological Change, E-skills and Wage Inequality: Evidence from Tunisia

Skill-biased Technological Change, E-skills and Wage Inequality: Evidence from Tunisia

Globalization, technological change and labor demand: a firm-level analysis for Turkey

Trading for SDGs: Trade Liberalization and Human Development in the Emerging Economies

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