Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990

Most high and middle-income countries showed symptoms of skill-biased technological change in the 1980s. India-a low income country-did not, perhaps because India's traditionally controlled economy may have limited the transfer of technologies from abroad. However the economy underwent a sharp...

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Main Authors: Berman, Eli, Somanathan, Rohini, Tan, Hong W.
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/11/6361931/skill-biased-technological-change-yet-evidence-indian-manufacturing-1990
http://hdl.handle.net/10986/8482
id okr-10986-8482
recordtype oai_dc
spelling okr-10986-84822021-04-23T14:02:43Z Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990 Berman, Eli Somanathan, Rohini Tan, Hong W. ADJUSTMENT COSTS AGGREGATE DEMAND AGRICULTURE BUSINESS CYCLES CAPITAL GOODS CAPITAL STOCK CAPITAL-SKILL CAPITAL-SKILL COMPLEMENTARITY CONSTANT RETURNS TO SCALE DEMAND CURVE DEMAND FOR EDUCATION DEMAND FOR SKILL DEMAND FOR SKILLS EDUCATED WORKERS ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT INCREASE EMPLOYMENT OUTCOMES EMPLOYMENT SHARE EQUATIONS EXPORTS FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN MARKETS GDP GNP HUMAN CAPITAL IMPORT QUOTAS INCOME INDUSTRIAL POLICY INDUSTRY COMPONENTS INVESTMENT LABOR MARKET LABOR MARKETS MARGINAL PRODUCT MARGINAL PRODUCTS MEASURES OF TECHNOLOGY MIDDLE INCOME COUNTRIES MONOPOLIES PATTERN OF SKILL UPGRADING PATTERNS OF SKILL UPGRADING PREVIOUS SECTION PREVIOUS WORK PRIVATE FIRMS PRIVATE SECTOR PRODUCT MIX PRODUCTION FUNCTION PUBLIC INVESTMENT PUBLIC SECTOR R&D REGULATION REGULATORY FRAMEWORK SCALE EFFECTS SKILL UPGRADING SKILLED LABOR SKILLED WORKERS STATEMENT STATEMENTS SUPPLY CURVES TECHNOLOGICAL CHANGE TECHNOLOGY ADOPTION TOTAL WAGE TRADE LIBERALIZATION TRADE POLICIES UNSKILLED LABOR UNSKILLED WORKERS VALUE ADDED WAGE BILL WAGES WORKERS Most high and middle-income countries showed symptoms of skill-biased technological change in the 1980s. India-a low income country-did not, perhaps because India's traditionally controlled economy may have limited the transfer of technologies from abroad. However the economy underwent a sharp reform and a manufacturing boom in the 1990s, raising the possibility that technology absorption may have accelerated during the past decade. The authors investigate the hypothesis that skill-biased technological change did in fact arrive in India in the 1990s using panel data disaggregated by industry and state from the Annual Survey of Industry. These data confirm that while the 1980s were a period of falling skills demand, the 1990s showed generally rising demand for skills, with variation across states. They find that increased output and capital-skill complementarity appear to be the best explanations of skill upgrading in the 1990s. Skill upgrading did not occur in the same set of industries in India as it did in other countries, suggesting that increased demand for skills in Indian manufacturing is not due to the international diffusion of recent vintages of skill-biased technologies. 2012-06-19T20:20:42Z 2012-06-19T20:20:42Z 2005-11 http://documents.worldbank.org/curated/en/2005/11/6361931/skill-biased-technological-change-yet-evidence-indian-manufacturing-1990 http://hdl.handle.net/10986/8482 English Policy Research Working Paper; No. 3761 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ADJUSTMENT COSTS
AGGREGATE DEMAND
AGRICULTURE
BUSINESS CYCLES
CAPITAL GOODS
CAPITAL STOCK
CAPITAL-SKILL
CAPITAL-SKILL COMPLEMENTARITY
CONSTANT RETURNS TO SCALE
DEMAND CURVE
DEMAND FOR EDUCATION
DEMAND FOR SKILL
DEMAND FOR SKILLS
EDUCATED WORKERS
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPLOYMENT
EMPLOYMENT GROWTH
EMPLOYMENT INCREASE
EMPLOYMENT OUTCOMES
EMPLOYMENT SHARE
EQUATIONS
EXPORTS
FOREIGN EXCHANGE
FOREIGN INVESTMENT
FOREIGN MARKETS
GDP
GNP
HUMAN CAPITAL
IMPORT QUOTAS
INCOME
INDUSTRIAL POLICY
INDUSTRY COMPONENTS
INVESTMENT
LABOR MARKET
LABOR MARKETS
MARGINAL PRODUCT
MARGINAL PRODUCTS
MEASURES OF TECHNOLOGY
MIDDLE INCOME COUNTRIES
MONOPOLIES
PATTERN OF SKILL UPGRADING
PATTERNS OF SKILL UPGRADING
PREVIOUS SECTION
PREVIOUS WORK
PRIVATE FIRMS
PRIVATE SECTOR
PRODUCT MIX
PRODUCTION FUNCTION
PUBLIC INVESTMENT
PUBLIC SECTOR
R&D
REGULATION
REGULATORY FRAMEWORK
SCALE EFFECTS
SKILL UPGRADING
SKILLED LABOR
SKILLED WORKERS
STATEMENT
STATEMENTS
SUPPLY CURVES
TECHNOLOGICAL CHANGE
TECHNOLOGY ADOPTION
TOTAL WAGE
TRADE LIBERALIZATION
TRADE POLICIES
UNSKILLED LABOR
UNSKILLED WORKERS
VALUE ADDED
WAGE BILL
WAGES
WORKERS
spellingShingle ADJUSTMENT COSTS
AGGREGATE DEMAND
AGRICULTURE
BUSINESS CYCLES
CAPITAL GOODS
CAPITAL STOCK
CAPITAL-SKILL
CAPITAL-SKILL COMPLEMENTARITY
CONSTANT RETURNS TO SCALE
DEMAND CURVE
DEMAND FOR EDUCATION
DEMAND FOR SKILL
DEMAND FOR SKILLS
EDUCATED WORKERS
ELASTICITY
ELASTICITY OF SUBSTITUTION
EMPLOYMENT
EMPLOYMENT GROWTH
EMPLOYMENT INCREASE
EMPLOYMENT OUTCOMES
EMPLOYMENT SHARE
EQUATIONS
EXPORTS
FOREIGN EXCHANGE
FOREIGN INVESTMENT
FOREIGN MARKETS
GDP
GNP
HUMAN CAPITAL
IMPORT QUOTAS
INCOME
INDUSTRIAL POLICY
INDUSTRY COMPONENTS
INVESTMENT
LABOR MARKET
LABOR MARKETS
MARGINAL PRODUCT
MARGINAL PRODUCTS
MEASURES OF TECHNOLOGY
MIDDLE INCOME COUNTRIES
MONOPOLIES
PATTERN OF SKILL UPGRADING
PATTERNS OF SKILL UPGRADING
PREVIOUS SECTION
PREVIOUS WORK
PRIVATE FIRMS
PRIVATE SECTOR
PRODUCT MIX
PRODUCTION FUNCTION
PUBLIC INVESTMENT
PUBLIC SECTOR
R&D
REGULATION
REGULATORY FRAMEWORK
SCALE EFFECTS
SKILL UPGRADING
SKILLED LABOR
SKILLED WORKERS
STATEMENT
STATEMENTS
SUPPLY CURVES
TECHNOLOGICAL CHANGE
TECHNOLOGY ADOPTION
TOTAL WAGE
TRADE LIBERALIZATION
TRADE POLICIES
UNSKILLED LABOR
UNSKILLED WORKERS
VALUE ADDED
WAGE BILL
WAGES
WORKERS
Berman, Eli
Somanathan, Rohini
Tan, Hong W.
Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
geographic_facet South Asia
India
relation Policy Research Working Paper; No. 3761
description Most high and middle-income countries showed symptoms of skill-biased technological change in the 1980s. India-a low income country-did not, perhaps because India's traditionally controlled economy may have limited the transfer of technologies from abroad. However the economy underwent a sharp reform and a manufacturing boom in the 1990s, raising the possibility that technology absorption may have accelerated during the past decade. The authors investigate the hypothesis that skill-biased technological change did in fact arrive in India in the 1990s using panel data disaggregated by industry and state from the Annual Survey of Industry. These data confirm that while the 1980s were a period of falling skills demand, the 1990s showed generally rising demand for skills, with variation across states. They find that increased output and capital-skill complementarity appear to be the best explanations of skill upgrading in the 1990s. Skill upgrading did not occur in the same set of industries in India as it did in other countries, suggesting that increased demand for skills in Indian manufacturing is not due to the international diffusion of recent vintages of skill-biased technologies.
format Publications & Research :: Policy Research Working Paper
author Berman, Eli
Somanathan, Rohini
Tan, Hong W.
author_facet Berman, Eli
Somanathan, Rohini
Tan, Hong W.
author_sort Berman, Eli
title Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
title_short Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
title_full Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
title_fullStr Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
title_full_unstemmed Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990
title_sort is skill-biased technological change here yet? evidence from indian manufacturing in the 1990
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/11/6361931/skill-biased-technological-change-yet-evidence-indian-manufacturing-1990
http://hdl.handle.net/10986/8482
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