Working on the Train? The Role of Technical Progress and rade in Explaining Wage Differentials in Italian Firms

Manasse, Paolo ; Stanca, Luca (2003) Working on the Train? The Role of Technical Progress and rade in Explaining Wage Differentials in Italian Firms. DOI 10.6092/unibo/amsacta/617.
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Abstract

This paper presents firm-level evidence on the dynamics of the relative demand for non-manual workers in Italian manufacturing during the 1990s. The analysis provides a number of interesting results. First, the rise within firms in the share of non manual workers in both employment and hours worked (within-firm skill upgrading) is the main determinant of the increase in the relative demand for skilled workers. By contrast, demand changes associated to trade have mitigated such a rise by shifting employment away from skill-intensive firms. Second, while the relative number of hours worked by skilled workers within firms has risen, the hourly wage premium has fallen. Third, within-firm skill upgrading is strongly and significantly related to investment in computers and R&D. Fourth, we find that technical progress has raised the relative productivity of skilled workers (the skill-bias of technical progress is positive). Finally we show that the standard approach that measures annual, rather than hourly relative wages, produces a downward bias in the estimate of the skill-bias of technical progress.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Manasse, Paolo
Stanca, Luca
Keywords
wage differentials skill bias technical progress globalization
Subjects
DOI
Deposit date
17 Jun 2004
Last modified
17 Feb 2016 13:58
URI

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