The Effect of Trade on the Demand for Skill PDF Download

Author: Guy Michaels
Publisher:
ISBN:
Category : Express highways
Languages : en
Pages : 40

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Author: Ivan T. Kandilov
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Using county-level data from the 1980s and 1990s and a county-level trade measure that incorporates the county's industrial mix and patterns of international trade across industries, I provide new evidence that trade with developing countries raises the demand for skill and the skill premium in the U.S. Consistent with Heckscher-Ohlin, I find that trade driven by differences in factor endowments has an economically significant impact on local labor markets. The evidence suggests that when trade with developing countries rises, counties with higher skill endowment and greater employment in industries with larger trade shares experience greater relative demand for high-skilled labor.

Author: María José Orraca Corona
Publisher:
ISBN:
Category :
Languages : en
Pages : 94

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This dissertation explores the effect of trade in demand for skill in an unskilled labor abundant country. I use the case of Mexico to document that exporters are on average more skill-intensive than non exporters, yet conditional on exporting skill intensity is negatively correlated with export sales. I build a model to explain these two observations simultaneously and estimate it for two Mexican manufacturing industries in 2003. A counterfactual analysis illustrates that when trade costs decrease, resources are reallocated to the most skilled-intensive firms within industries but toward the unskilled-intensive tasks within industries. When trade costs are high, the first effect dominates and skill premium increases. When trade costs are sufficiently low, comparative advantage in unskilled intensive activities dominates and skill premium decreases. This pattern matches the observed behavior of skill premium in Mexican manufacturing industry following trade liberalization reforms.

Author: John M. Abowd
Publisher:
ISBN:
Category : Labor market
Languages : en
Pages : 56

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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.

Author: William R. Cline
Publisher: Peterson Institute
ISBN: 9780881322163
Category : Business & Economics
Languages : en
Pages : 330

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"Cline also finds that trade liberalization has tended to raise skilled wages rather than reduce unskilled wages. Moreover, its impact has probably been no larger than falling transport and communication costs. Most importantly for policy, model simulations for the future show more limited trade impact than in the past and little unequalizing impact of further trade liberalization. Book jacket."--Jacket.

Author: Justin Caron
Publisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 67

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Almost all of the literature about the growth of income inequality and the relationship between skilled and unskilled wages approaches the issue from the production side of general equilibrium (skill-biased technical change, international trade). Here, we add a role for income-dependent demand interacted with factor intensities in production. We explore how income growth and trade liberalization influence the demand for skilled labor when preferences are non-homothetic and income-elastic goods are more intensive in skilled labor, an empirical regularity documented in Caron, Fally and Markusen (2014). In one experiment, counterfactual simulations show that sector neutral productivity growth, which generates shifts in consumption towards skill-intensive goods, leads to significant increases in the skill premium: in developing countries, a one percent increase in productivity leads to a 0.1 to 0.25 percent increase in the skill premium. In several countries, including China and India, simulations suggest that the historical growth experienced in the last 25 years may have led to an increase in the skill premium of more than 10%. In a second experiment, we show that trade cost reductions generate quantitatively very different outcomes once we account for non- homothetic preferences. These imply substantially less predicted net factor content of trade and allow for a shift in consumption patterns caused by trade-induced income growth. Overall, the negative effect of trade cost reductions on the skill premium predicted for developing countries under homothetic preferences (Stolper-Samuelson) is strongly mitigated, and sometimes reversed.

Author: Charles R. Hulten
Publisher: University of Chicago Press
ISBN: 022656794X
Category : Business & Economics
Languages : en
Pages : 528

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Over the past few decades, US business and industry have been transformed by the advances and redundancies produced by the knowledge economy. The workplace has changed, and much of the work differs from that performed by previous generations. Can human capital accumulation in the United States keep pace with the evolving demands placed on it, and how can the workforce of tomorrow acquire the skills and competencies that are most in demand? Education, Skills, and Technical Change explores various facets of these questions and provides an overview of educational attainment in the United States and the channels through which labor force skills and education affect GDP growth. Contributors to this volume focus on a range of educational and training institutions and bring new data to bear on how we understand the role of college and vocational education and the size and nature of the skills gap. This work links a range of research areas—such as growth accounting, skill development, higher education, and immigration—and also examines how well students are being prepared for the current and future world of work.

Author: Marc Bacchetta
Publisher: World Trade Organization
ISBN:
Category : Business & Economics
Languages : en
Pages : 196

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Book Description
In recent decades, the global economy has experienced a profound transformation due to trade integration and technological progress as well as important political changes. This transformation has been accompanied by significant positive effects at the global level, as increased trade integration has helped to raise incomes in advanced and developing economies, lifting millions out of poverty. At the same time, it has translated into changes experienced by individuals, companies and communities. While overall, better job opportunities are on the rise, workers who are forced to leave their existing jobs may find it difficult to share in these improvements. Policies aimed at facilitating adjustment can reduce the number of those left behind by trade or technology, while at the same time raising the net gains from these developments, improving overall efficiency and boosting incomes. Given the role of skills in productivity and in trade performance as well as in access to employment and wage distribution, a strong emphasis on skills development is vital for both firms and workers. This publication argues that in the current fast-changing context of globalization, where technology and trade relations evolve rapidly, the responsiveness of skills supply to demand plays a central role not only from an efficiency perspective, but also from a distributional perspective. Featuring results from the ILO's Skills for Trade and Economic Diversification (STED) programme, this report shows that appropriate skills development policies are key to helping firms participate in trade, and also to helping workers find good jobs.

Author: Gordon H. Hanson
Publisher:
ISBN:
Category : Income distribution
Languages : en
Pages : 60

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In Mexico during the 1980s, the wages of more-educated, more- experienced workers rose relative to those of less-educated, less- experienced workers. We assess the extent to which the increase in the skilled-unskilled wage gap was associated with Mexico's recent trade reform. In particular, we examine whether trade reform has shifted employment towards industries that are relatively intensive in the use of skilled labor (Stolper-Samuelson-type effects). The results suggest that the rising wage gap is associated with changes internal to industries and even internal to plants that cannot be explained by Stolper-Samuelson-type effects. We also find that other characteristics associated with globalization -- such as foreign investment and export orientation -- matter. Exporting firms and joint ventures pay higher wages to skilled workers and demand more skilled labor than other firms.

Author: Tom Lewis
Publisher: Penguin Group
ISBN: 9780140267716
Category : Interstate Highway System
Languages : en
Pages : 0

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Book Description
In Divided Highways, Tom Lewis tells the monumental story of the largest engineered structure ever built: the Interstate Highway System. Here is one of the great untold tales of American enterprise, recounted entirely through the stories of the human beings who thought up, mapped out, poured, paved - and tried to stop - the Interstates. Conceived and spearheaded by Thomas "the Chief" MacDonald, the iron-willed bureaucrat from the muddy farmlands of Iowa who rose to unrivaled power, the highway system was propelled forward through the pathbreaking efforts of brilliant engineers, argued over by politicians of every ideological and moral stripe, reviled by the citizens whose lives it devastated, and lauded as the greatest public works project in U.S. history.