Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America

The authors describe the evolution of relative wages in five Latin American countries-Argentina, Brazil, Chile, Colombia, and Mexico. They use repeated cross-sections of household surveys, and decompose the evolution of relative wages into factors...

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Main Authors: Sanchez-Paramo, Carolina, Schady, Norbert
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2003/04/2280437/off-running-technology-trade-rising-demand-skilled-workers-latin-america
http://hdl.handle.net/10986/18256
id okr-10986-18256
recordtype oai_dc
spelling okr-10986-182562021-04-23T14:03:42Z Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America Sanchez-Paramo, Carolina Schady, Norbert TECHNOLOGICAL CHANGE TECHNOLOGICAL KNOWLEDGE TECHNOLOGICAL CAPACITY SKILLED WORKERS EMPLOYMENT SKILLS IMPORT LIBERALIZATION IMPORT DEMAND CAPITAL GOODS LABOR DEMAND PRODUCTIVITY WAGE LEVELS LABOR MARKET CHARACTERISTICS ADDITION AGED AGGREGATE DEMAND ANNUAL CHANGE AVERAGE SHARE CAPITAL GOODS CHEMISTRY COMPOSITION CONSTANT ELASTICITY CROSS-COUNTRY STUDIES DEMAND CURVE DEMAND SIDE DEMAND-SIDE DEVELOPING COUNTRIES ECONOMIC DOWNTURNS ELASTICITY ELASTICITY OF SUBSTITUTION ENGINEERING FRACTIONS GDP GINI COEFFICIENT GROWTH RATES HOUSEHOLD DATA HOUSEHOLD SURVEYS HUMAN CAPITAL IMPORTS INCOME INEQUALITY INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LITERATURE MATHEMATICS MINIMUM WAGES NATURAL SCIENCES NEGATIVE COEFFICIENTS OBSERVED CHANGES PHYSICS POLICY IMPLICATIONS POLICY RESEARCH POSITIVE CORRELATION POSITIVE IMPACT PRIMARY EDUCATION PRODUCTION FUNCTION PRODUCTIVITY REAL WAGES RELATIVE DEMAND RELATIVE IMPORTANCE RELATIVE SUPPLY RELATIVE WAGES RISING DEMAND SCHOOLS SECTOR EMPLOYMENT SKILLED LABOR SKILLED WORKERS TECHNOLOGICAL CHANGE TERTIARY EDUCATION TIME SERIES TRADE LIBERALIZATION UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES VALUE ADDED WAGES WORKERS YOUNG WORKERS The authors describe the evolution of relative wages in five Latin American countries-Argentina, Brazil, Chile, Colombia, and Mexico. They use repeated cross-sections of household surveys, and decompose the evolution of relative wages into factors associated with changes in relative supply and relative demand. The authors have three main conclusions: 1) Increases in the relative wages of the most skilled (university-educated) workers took place concurrently with increases in their relative abundance in all of the countries except Brazil. This is strong evidence of increases in the demand for skilled workers. 2) Increases in the wage bill of skilled workers occurred largely within sectors, and in the same sectors in different countries, which is consistent with skill-biased technological change. 3) Trade appears to be an important transmission mechanism. Increases in the demand for the most skilled workers took place at a time when countries in Latin America considerably increased the penetration of imports, including imports of capital goods. The authors show that changes in the volume and research and development intensity of imports are significantly related to changes in the demand for more skilled workers in Latin America. Their research complements earlier work on the effects of technology transmitted through trade on productivity and on the demand for skilled labor. 2014-05-12T18:21:55Z 2014-05-12T18:21:55Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2280437/off-running-technology-trade-rising-demand-skilled-workers-latin-america http://hdl.handle.net/10986/18256 English en_US Policy Research Working Paper;No. 3015 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Latin America
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic TECHNOLOGICAL CHANGE
TECHNOLOGICAL KNOWLEDGE
TECHNOLOGICAL CAPACITY
SKILLED WORKERS
EMPLOYMENT SKILLS
IMPORT LIBERALIZATION
IMPORT DEMAND
CAPITAL GOODS
LABOR DEMAND
PRODUCTIVITY
WAGE LEVELS
LABOR MARKET CHARACTERISTICS ADDITION
AGED
AGGREGATE DEMAND
ANNUAL CHANGE
AVERAGE SHARE
CAPITAL GOODS
CHEMISTRY
COMPOSITION
CONSTANT ELASTICITY
CROSS-COUNTRY STUDIES
DEMAND CURVE
DEMAND SIDE
DEMAND-SIDE
DEVELOPING COUNTRIES
ECONOMIC DOWNTURNS
ELASTICITY
ELASTICITY OF SUBSTITUTION
ENGINEERING
FRACTIONS
GDP
GINI COEFFICIENT
GROWTH RATES
HOUSEHOLD DATA
HOUSEHOLD SURVEYS
HUMAN CAPITAL
IMPORTS
INCOME
INEQUALITY
INTERNATIONAL TRADE
LABOR FORCE
LABOR MARKET
LITERATURE
MATHEMATICS
MINIMUM WAGES
NATURAL SCIENCES
NEGATIVE COEFFICIENTS
OBSERVED CHANGES
PHYSICS
POLICY IMPLICATIONS
POLICY RESEARCH
POSITIVE CORRELATION
POSITIVE IMPACT
PRIMARY EDUCATION
PRODUCTION FUNCTION
PRODUCTIVITY
REAL WAGES
RELATIVE DEMAND
RELATIVE IMPORTANCE
RELATIVE SUPPLY
RELATIVE WAGES
RISING DEMAND
SCHOOLS
SECTOR EMPLOYMENT
SKILLED LABOR
SKILLED WORKERS
TECHNOLOGICAL CHANGE
TERTIARY EDUCATION
TIME SERIES
TRADE LIBERALIZATION
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
VALUE ADDED
WAGES
WORKERS
YOUNG WORKERS
spellingShingle TECHNOLOGICAL CHANGE
TECHNOLOGICAL KNOWLEDGE
TECHNOLOGICAL CAPACITY
SKILLED WORKERS
EMPLOYMENT SKILLS
IMPORT LIBERALIZATION
IMPORT DEMAND
CAPITAL GOODS
LABOR DEMAND
PRODUCTIVITY
WAGE LEVELS
LABOR MARKET CHARACTERISTICS ADDITION
AGED
AGGREGATE DEMAND
ANNUAL CHANGE
AVERAGE SHARE
CAPITAL GOODS
CHEMISTRY
COMPOSITION
CONSTANT ELASTICITY
CROSS-COUNTRY STUDIES
DEMAND CURVE
DEMAND SIDE
DEMAND-SIDE
DEVELOPING COUNTRIES
ECONOMIC DOWNTURNS
ELASTICITY
ELASTICITY OF SUBSTITUTION
ENGINEERING
FRACTIONS
GDP
GINI COEFFICIENT
GROWTH RATES
HOUSEHOLD DATA
HOUSEHOLD SURVEYS
HUMAN CAPITAL
IMPORTS
INCOME
INEQUALITY
INTERNATIONAL TRADE
LABOR FORCE
LABOR MARKET
LITERATURE
MATHEMATICS
MINIMUM WAGES
NATURAL SCIENCES
NEGATIVE COEFFICIENTS
OBSERVED CHANGES
PHYSICS
POLICY IMPLICATIONS
POLICY RESEARCH
POSITIVE CORRELATION
POSITIVE IMPACT
PRIMARY EDUCATION
PRODUCTION FUNCTION
PRODUCTIVITY
REAL WAGES
RELATIVE DEMAND
RELATIVE IMPORTANCE
RELATIVE SUPPLY
RELATIVE WAGES
RISING DEMAND
SCHOOLS
SECTOR EMPLOYMENT
SKILLED LABOR
SKILLED WORKERS
TECHNOLOGICAL CHANGE
TERTIARY EDUCATION
TIME SERIES
TRADE LIBERALIZATION
UNEMPLOYMENT
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
VALUE ADDED
WAGES
WORKERS
YOUNG WORKERS
Sanchez-Paramo, Carolina
Schady, Norbert
Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
geographic_facet Latin America & Caribbean
Latin America
relation Policy Research Working Paper;No. 3015
description The authors describe the evolution of relative wages in five Latin American countries-Argentina, Brazil, Chile, Colombia, and Mexico. They use repeated cross-sections of household surveys, and decompose the evolution of relative wages into factors associated with changes in relative supply and relative demand. The authors have three main conclusions: 1) Increases in the relative wages of the most skilled (university-educated) workers took place concurrently with increases in their relative abundance in all of the countries except Brazil. This is strong evidence of increases in the demand for skilled workers. 2) Increases in the wage bill of skilled workers occurred largely within sectors, and in the same sectors in different countries, which is consistent with skill-biased technological change. 3) Trade appears to be an important transmission mechanism. Increases in the demand for the most skilled workers took place at a time when countries in Latin America considerably increased the penetration of imports, including imports of capital goods. The authors show that changes in the volume and research and development intensity of imports are significantly related to changes in the demand for more skilled workers in Latin America. Their research complements earlier work on the effects of technology transmitted through trade on productivity and on the demand for skilled labor.
format Publications & Research :: Policy Research Working Paper
author Sanchez-Paramo, Carolina
Schady, Norbert
author_facet Sanchez-Paramo, Carolina
Schady, Norbert
author_sort Sanchez-Paramo, Carolina
title Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
title_short Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
title_full Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
title_fullStr Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
title_full_unstemmed Off and Running? Technology, Trade and the Rising Demand for Skilled Workers in Latin America
title_sort off and running? technology, trade and the rising demand for skilled workers in latin america
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2003/04/2280437/off-running-technology-trade-rising-demand-skilled-workers-latin-america
http://hdl.handle.net/10986/18256
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