Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)

Tan, Hong; Batra, Geeta

doi:10.1093/wber/11.1.59

Cited by 68 publications

(40 citation statements)

References 19 publications

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“…Tan and Batra (1997) for Colombia, Mexico, and Taiwan; Lopez-Acevedo (2002a) for Mexico; and Araujo, Bogliacino, and Vivarelli (2011) for Brazil all provide evidence of skillbiased technological change. The former study compares the effects of R&D, worker training, and exports on the wages of skilled and unskilled workers.…”

Section: Innovation Strategies and Employmentmentioning

confidence: 99%

Innovation strategies and employment in Latin American firms

Crespi

Zúñiga

2013

Structural Change and Economic Dynamics

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2This study examines the impact of innovation strategies on employment growth in four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro-data for manufacturing firms from innovation surveys. Building on the model proposed by Harrison et al. (2008), we relate employment to three innovation strategies: make only (R&D), buy only (external R&D, licensing of patents and know-how, technical assistance, and other external innovation activities) and make and buy (mixed strategy). Firms that conduct in-house innovation activities ("make only") have the greatest impact on employment; the "make and buy" strategy comes in second. Similar results are found for small firms. These results highlight the importance of fostering in-house technological efforts not only for innovation per se, but also to promote growth in firm employment. The impact of "make only" strategies is greater in high-tech industries, whereas "make only" and "make and buy" have a similar impact on employment in low-tech industries. Finally, the study provides evidence of the mechanisms through which innovation strategies affect employment. The findings show that innovation strategies enhance technological innovation, but their impact differs between product and process innovation. Product innovation is mainly motivated by in-house technology investments, followed by mixed strategies, whereas process innovation is basically driven by "buy" strategies.JEL: O12, O14, O31, O33, O40, J21

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Section: Innovation Strategies and Employmentmentioning

confidence: 99%

Innovation strategies and employment in Latin American firms

Crespi

Zúñiga

2013

Structural Change and Economic Dynamics

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“…They cited skill-biased technological change and capital-skill complementarities as possible explanations. Tan and Batra (1997) used Census of Manufacturers data to examine the relationship between measures of technology and skills demand in Colombia, Mexico, and Taiwan. Their hypothesis is that skill-biased wage differentials result from firms' technology-generating activities, such as R&D, worker training, and exports.…”

Section: Previous Studiesmentioning

confidence: 99%

Technological Change and Demand for Skills in Developing Countries: An Empirical Investigation of the Republic of Korea's Case

Kang¹,

Hong²

2002

The Developing Economies

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There are few studies that directly address the upskilling issues in developing countries. Since theoretical analyses of these issues usually yield different results, upskilling in developing counties, and the factors of upskilling, if any, are rather empirical questions. This study shows that upskilling that occurs in developed countries in terms of the ratio of the number of white-collar workers to that of blue-collar workers also occurred in the Republic of Korea, one of developing countries. Increasing demand for highly-skilled workers reflected in their employment and wage shares can be largely explained by "within industry" shifts, not by "between industry" shifts, especially in the manufacturing industry. To further investigate the causes of these shifts, changes in white-collar shares are regressed on the capital-output and R&D-sales ratio. Estimated coefficients are all positive, suggesting capital-skill complementarities and skill-biased technological change.

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“…Dunne and Schmitz (1995) for the U.S., Martinez-Ros (1998) for Spain; Casavola et al (1996) for Italy; for the UK; Tan and Batra (1997) There is a similar pattern in the individual data. Krueger (1993) found strong effects of computer use on wages.…”

Section: Wagesmentioning

confidence: 70%