TY - JOUR
T1 - Equipment Investment and the Relative Demand for Skilled Labor
T2 - International Evidence
AU - Flug, Karnit
AU - Hercowitz, Zvi
PY - 2000/7
Y1 - 2000/7
N2 - The effects of equipment investment on relative wages and employment of skilled labor are estimated. The basic hypothesis is that such effects are positive, because of the presence of either equipment-skill complementarity or skill advantage in technology adoption. Using a panel data set for a wide range of countries, the relative wage and relative employment of skilled workers are regressed on lagged investment in machinery and other relevant variables. The results indicate a positive and strong effect of machinery investment on the relative demand for skilled labor, with the relative wage responding much sooner and for a much shorter time than relative employment. Journal of Economic Literature Classification Number: E24.
AB - The effects of equipment investment on relative wages and employment of skilled labor are estimated. The basic hypothesis is that such effects are positive, because of the presence of either equipment-skill complementarity or skill advantage in technology adoption. Using a panel data set for a wide range of countries, the relative wage and relative employment of skilled workers are regressed on lagged investment in machinery and other relevant variables. The results indicate a positive and strong effect of machinery investment on the relative demand for skilled labor, with the relative wage responding much sooner and for a much shorter time than relative employment. Journal of Economic Literature Classification Number: E24.
KW - Equipment investment; skill premium
UR - http://www.scopus.com/inward/record.url?scp=0013300437&partnerID=8YFLogxK
U2 - 10.1006/redy.1999.0080
DO - 10.1006/redy.1999.0080
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AN - SCOPUS:0013300437
SN - 1094-2025
VL - 3
SP - 461
EP - 485
JO - Review of Economic Dynamics
JF - Review of Economic Dynamics
IS - 3
ER -