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Technology and the demand for skill: an analysis of within and between firm differences

We estimate the effects of technology investments on the demand for skilled workers using longitudinally integrated ... Show more
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.
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Authors: Abowd, John M.; Haltiwanger, John C.; Lane, Julia; McKinney, Kevin L. ... [+] Show more

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2007

Geographic subjects: North America; United States

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Technology; Skills and knowledge; Research ... [+] Show more
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The demand for high-skilled workers and immigration policy

This paper provides a descriptive analysis of the demand for high-skilled workers using a new firm data set, the IZ ... Show more
This paper provides a descriptive analysis of the demand for high-skilled workers using a new firm data set, the IZA International Employer Survey 2000. Our results suggest that while workers from [European Union] EU-countries are mainly complements to domestic high-skilled workers, workers from non-EU countries are hired because of a shortage of high-skilled labour. The paper, furthermore, provides a short description of recent German policy initiatives regarding the temporary immigration of high-skilled labour. In view of our descriptive results these temporary immigration policies seem, however, to satisfy only partly the demand of firms interested in recruiting foreign high-skilled workers. A more comprehensive immigration policy covering also the permanent immigration of high-skilled workers appears to be necessary.
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Authors: Bauer, Thomas K.; Kunze, Astrid

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2004

Geographic subjects: Europe; Germany

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Research; Policy; Statistics ... [+] Show more
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The demand for labour: an analysis using matched employer-employee data from the German LIAB: will the high unskilled worker own-wage elasticity please stand up?

This paper uses matched employee-employer LIAB data to provide panel estimates of the structure of labor demand in ... Show more
This paper uses matched employee-employer LIAB data to provide panel estimates of the structure of labor demand in Germany, 1993-2002, distinguishing between highly skilled, skilled, and unskilled labor and between the manufacturing and service sectors. Reflecting current preoccupations, our demand analysis seeks also to accommodate the impact of technology and trade in addition to wages. The bottom-line interests are to provide elasticities of the demand for unskilled (and other) labor that should assist in short-run policy design and to identify the extent of skill biases or otherwise in trade and technology.
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Authors: Addison, John T.; Bellmann, Lutz; Schank, Thorsten; Teixeira, Paulino

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2005

Geographic subjects: Europe; Poland

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Technology; Skills and knowledge; Industry ... [+] Show more
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Overskilling, job insecurity and career mobility

This paper uses longitudinal data from Australia to examine the extent to which overskilling - the extent to which ... Show more
This paper uses longitudinal data from Australia to examine the extent to which overskilling - the extent to which work-related skills and abilities are utilized in current employment - is a transitory phenomenon. The results suggest that while overskilled workers are much more likely to want to quit their current job, they are also relatively unconfident of finding an improved job match. Furthermore, some of the greater mobility observed among overskilled workers is due to involuntary job separations, and even in instances where job separations are voluntary, the majority of moves do not result in improved skills matches. Published abstract reprinted by permission of the copyright owner. Show less

Authors: McGuinness, Seamus; Wooden, Mark

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2007

Geographic subjects: Oceania; Australia

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Vocational education and training; Career development; Higher education ... [+] Show more
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A nonparametric examination of capital-skill complementarity

This paper uses nonparametric kernel methods to construct observation-specific elasticities of substitution for a b ... Show more
This paper uses nonparametric kernel methods to construct observation-specific elasticities of substitution for a balanced panel of 73 developed and developing countries to examine the capital-skill complementarity hypothesis. The exercise shows some support for capital-skill complementarity, but the strength of the evidence depends upon the definition of skilled labor and the elasticity of substitution measure being used. The added flexibility of the nonparametric procedure is also able to uncover that the elasticities of substitution vary across countries, groups of countries and time periods.
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Authors: Henderson, Daniel J.

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2008

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Research; Skills and knowledge; Statistics ... [+] Show more
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Labor market dynamics in Tunisia: the issue of youth unemployment

This paper analyzes the dynamics of the youth labor market in Tunisia using unique labor force survey data from 200 ... Show more
This paper analyzes the dynamics of the youth labor market in Tunisia using unique labor force survey data from 2005 to 2007 that include a longitudinal component. It first shows that sustained economic growth will reduce youth unemployment over the next few years. Second, forecasts indicate that the growth of private sector services has the highest potential to reduce youth unemployment. Third, the analysis of labor market characteristics reveals that young graduates experience long unemployment as they cue for high-skill jobs. Moreover, the public sector remains the main provider of employment opportunities for many graduates, in particular for women.
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Authors: Stampini, Marco; Verdier-Chouchane, Audrey

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2011

Geographic subjects: Tunisia; Africa

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Youth; Labour market; Employment ... [+] Show more
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A history of Canadian recruitment of highly skilled immigrants: circa 1980-2001

This paper identifies the types of immigrants that Canada has recruited to foster modern Canadian economic developm ... Show more
This paper identifies the types of immigrants that Canada has recruited to foster modern Canadian economic development and assesses how effective Canada has been in recruiting and retaining these required immigrants in the 21st century. Evidence from both ‘balance of trade’ and ‘balance of payments’ exercises indicates that it is difficult to determine if there actually exist positive net inflows of managers and professionals during the 1982-2001 period. The entry of these highly skilled immigrants resulted from a series of distinct labour market policies adopted by Citizenship and Immigration Canada and its predecessor agencies. The paper presents evidence to support that between 1976-1990 a ‘tap on-tap off’ policy admitted skilled immigrants to Canada only if a labour vacancy was anticipated. However, after 1990 tests reveal that the previous year’s economic immigrant admissions determined the contemporary immigrant flows with a 10 month lag. Offsetting this robust admission of economic immigrants in the 1990s was the substantial outflows of previous Canadian immigrants as part of the rising phenomenon of ‘brain circulation’. Of particular note is the large number of highly skilled Chinese who have returned to Hong-Kong after 1997. Given this ‘brain circulation’ and the chronic underutilization of its highly trained immigrants I conclude that Canada’s traditional use of immigrants as an ‘engine of growth’ is very limited in the 21st century and suggest recruitment of foreign graduate students to revitalize the role of immigrants in Canadian development.
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Authors: DeVoretz, Don J.

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2006

Geographic subjects: North America; Canada

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Migration; Statistics; Employment ... [+] Show more
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No education, no good jobs?: evidence on the relationship between education and labor market segmentation

This paper assesses labor market segmentation across formal and informal salaried jobs and self-employment in three ... Show more
This paper assesses labor market segmentation across formal and informal salaried jobs and self-employment in three Latin American and three transition countries. It looks separately at the markets for skilled and unskilled labor, inquiring if segmentation is an exclusive feature of the latter. Longitudinal data are used to assess wage differentials and mobility patterns across jobs. To study mobility, the paper compares observed transitions with a new benchmark measure of mobility under the assumption of no segmentation. It finds evidence of a formal wage premium relative to informal salaried jobs in the three Latin American countries, but not in transition economies. It also finds evidence of extensive mobility across these two types of jobs in all countries, particularly from informal salaried to formal jobs. These patterns are suggestive of a preference for formal over informal salaried jobs in all countries. In contrast, there is little mobility between self-employment and formal salaried jobs, suggesting the existence of barriers to this type of mobility or a strong assortative matching according to workers’ individual preferences. Lastly, for both wage differentials and mobility, there is no statistical difference across skill levels, indicating that the markets for skilled and unskilled labor are similarly affected by segmentation.
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Authors: Pages, Carmen; Stampini, Marco

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2007

Geographic subjects: Latin America

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Skills and knowledge; Outcomes; Statistics ... [+] Show more
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Labor market effects of immigration: evidence from neighborhood data

This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic ... Show more
This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic postcode-level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high- and low-skilled natives. Employing an instrumental variable strategy and utilizing the variation in the population share of foreigners across regions and time, we find no support for the hypothesis of adverse labor market effects of immigration.
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Authors: Bauer, Thomas K.; Flake, Regina; Sinning, Mathias G.

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2011

Geographic subjects: Germany; Europe

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Labour market; Demographics; Employment ... [+] Show more
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Eight questions about brain drain

High-skilled emigration is an emotive issue that in popular discourse is often referred to as brain drain, conjurin ... Show more
High-skilled emigration is an emotive issue that in popular discourse is often referred to as brain drain, conjuring images of extremely negative impacts on developing countries. Recent discussions of brain gain, diaspora effects, and other advantages of migration have been used to argue against this, but much of the discussion has been absent of evidence. This paper builds upon a new wave of empirical research to answer eight key questions underlying much of the brain drain debate: (1) What is brain drain?; (2) Why should economists care about it?; (3) Is brain drain increasing?; (4) Is there a positive relationship between skilled and unskilled migration?; (5) What makes brain drain more likely?; (6) Does brain gain exist?; (7) Do high-skilled workers remit, invest, and share knowledge back home? and (8) What do we know about the fiscal and production externalities of brain drain?
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Authors: Gibson, John; McKenzie, David

Corporate authors: Institute for the Study of Labour (Germany) (IZA)

Date: 2011

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Migration; Economics; Employment ... [+] Show more

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