Documents skill 760 results

"International trade has been cited as a source of widening wage inequality in industrial nations. Most previous empirical evidence supports this claim by showing an effect in which increasing exports tilt demand towards firms which export and employ a relatively large proportion of higher-skilled workers from the group of firms which do not export. We find that, in addition to this, there is also an effect whereby, among exporting firms, there is a significant wage premium for high-skilled workers and a wage discount for low-skilled workers. These estimates are based on a matched employer–employee data set of western German manufacturing firms over the period 1993–2007. Our estimates suggest that export activity can be associated with up to 30% of within and between skill group wage inequality."

"This study analyses the impacts of a technological change (the steam engine) on wage premiums. Using historical employer–employee panel data, we found that steam technology had both new skill-demanding and skill-replacing aspects. The former manifested itself as an increase in the demand for high-skilled engineers, the latter in a decline in the demand for intermediate-skilled, able-bodied seamen and an increase in the demand for unskilled engine room operators. Our panel data analysis, which controls for unobserved heterogeneity, implies that high-skilled labourers in abstract tasks and unskilled labourers in manual tasks improved their wage positions relative to intermediate-skilled labourers in routine tasks. These findings are compatible with the hypothesis of technology-based polarisation."

"This study examines the returns to foreign language skills of immigrants in the Spanish labor market. Measurement error and endogeneity issues are addressed by deriving a set of novel instruments for foreign language proficiency through a measure of linguistic dissimilarity. Using cross-sectional data from the 2007 National Immigrant Survey of Spain (NISS), returns to language skills are estimated separately for English, German, and French proficiency. Foreign language proficiency produces high returns, which appear to be mediated through the channel of occupational choice. The results are discussed against the background of a severe foreign language skills shortage in the Spanish economy. Immigrants may deal as a supplier of foreign language proficiency in the short run."

"There is a rising interest in both skills policy and industrial policy in OECD countries following the economic downturn. But how can skills policy best support industrial growth? In the UK, the coalition government is arguing for an industrial policy which is bottom-up, supporting networks of employers and helping to build productive local supply chains. There is simultaneous investment in a more ‘employer-led' skills policy, in order to better tackle skills shortages and gaps. But is an employer-led skills policy the best way of boosting industrial growth in all UK regions? Are there potential market failures in employer-led policies of which the public sector should be aware? This article warns against taking an overly simplistic approach to skills development, arguing that while skills policies should be flexible to the needs of employers, there is still justification for investing in a broad educational curriculum at the local level. Further, policy-makers may need proactively to help employers to better use skills in some regions in order to boost productivity and growth."

"This paper shows that specialized education reduces workers' mobility and hence their ability to cope with economic changes. We illustrate this point using labor force data from two countries having experienced important macroeconomic turbulence; a large economy with rigid labor markets, Poland, and a small open economy with increased flexibility, Estonia. We find that holding a vocational degree is associated with much longer unemployment duration spells and higher likelihood of leaving activity for older workers. We then build a theoretical framework in which young agents' careers are heavily determined by the type of initial education, and analyze the transition to a new steady-state after a sectoral demand shift. Quantitative exercises suggest that the over-specialization of the labor force in Poland led to much higher and persistent unemployment compared to Estonia during the period of EU enlargement. Traditional labor market institutions (wage rigidity and employment protection) lead to an increase of the unemployment gap, but to a lesser extent."

"Job competition between workers has important implications for “downgrading” and “bumping down”. To account for these phenomena, a matching model is considered in which highly educated and poorly educated workers compete for skilled jobs. An exogenous increase in the proportion of highly skilled workers increases the proportion of these workers in low-level jobs (downgrading). Another of the paper's findings is that changes in the composition of the workforce affect workers' opportunities to accumulate experience. An increase in the relative supply of highly educated workers reduces the opportunities for poorly educated workers to learn on the job. Both education and experience are required in order to access skilled jobs."