The Implications of Globalization for Firms’ Demand for Skilled and Unskilled Labor

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The Implications of Globalization for Firms’ Demand for Skilled and Unskilled Labor

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dc.contributor.author Scheuer, Christian en_US
dc.contributor.author Sørensen, Anders en_US
dc.contributor.author Rosholm, Michael en_US
dc.date.accessioned 2009-02-04T10:27:53Z
dc.date.available 2009-02-04T10:27:53Z
dc.date.issued 2007-12-05T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7625
dc.description.abstract This paper investigates the impact of globalization, in the sense of increasing international trade, on the demand for skills in Danish manufacturing companies. The study is based on a unique data set that enables us to develop rich measures of international outsourcing and import penetration. Moreover, the data also allows several strategies to strengthen the causal interpretation of our results. The main finding of the analysis is that it is of crucial importance to distinguish imports - both in the form of outsourcing and overall imports - by country-of-origin. We find that international trade with low-wage countries leads to skill-upgrading. This is especially pronounced for import penetration with a ceteris paribus contribution of around fifty percent to skill-upgrading. Moreover, we find that import penetration in goods originating from high-wage countries lead to skill-downgrading. This latter result suggests that Danish manufacturing has comparative advantage in skillintensive production when compared to low-wage countries, but in unskill-intensive production when compared to high-wage countries. Skill-upgrading, Low-wage country outsourcing, Low-wage country import penetration, Comparative advantage en_US
dc.format.extent 23 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2007-8 en_US
dc.title The Implications of Globalization for Firms’ Demand for Skilled and Unskilled Labor en_US
dc.type wp en_US
dc.accessionstatus modt07dec05 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656555636 en_US
dc.publisher.city København en_US
dc.publisher.year 2007 en_US


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