Technology-Induced Wage Premia in Canadian Manufacturing Plants During the 1980s

Statistics Canada Research Paper Series No. 92

36 Pages Posted: 21 Aug 1998

See all articles by John R. Baldwin

John R. Baldwin

Statistics Canada - Microeconomic Analysis Division

Tara Gray

Statistics Canada

Joanne Johnson

Statistics Canada

Date Written: January 9, 1997

Abstract

This study is one of a series that examines how technology adoption affects the skills of workers. Previous papers in the series have approached this issue in different ways with data from a variety of sources. Using data on the strategies and activities of small and medium-sized firms in both manufacturing and services industries, Baldwin and Johnson (1995), and Baldwin, Johnson and Pedersen (1996) examine the connection between the different strategies that are pursued by growing firms. Firms that stress technological competencies are found to also place a greater emphasis on skill enhancement and training activities. Using survey data on the type of technology used in manufacturing plants and plant managers' perceptions of the skill requirements and training costs associated with the adoption of new technologies, Baldwin, Gray and Johnson (1995) find that technology use leads to greater skill requirements, more training, and higher training costs.

This paper uses survey data on the incidence of advanced technology adoption and matched panel data on plant characteristics such as wages, capital intensity, and size to examine the connection between technology use and the wage rates received by workers. Since higher wages are associated with higher skill levels, establishing a connection between technology use and wages reinforces the earlier findings.

JEL Classification: J24, J31

Suggested Citation

Baldwin, John R. and Gray, Tara and Johnson, Joanne, Technology-Induced Wage Premia in Canadian Manufacturing Plants During the 1980s (January 9, 1997). Statistics Canada Research Paper Series No. 92. Available at SSRN: https://ssrn.com/abstract=116888 or http://dx.doi.org/10.2139/ssrn.116888

John R. Baldwin (Contact Author)

Statistics Canada - Microeconomic Analysis Division ( email )

24 Floor - R.H.Coats Building
Tunney's Pasture
Ottawa, Ontaria K1A 0T6
Canada
613-951-8588 (Phone)
613-951-5403 (Fax)

Tara Gray

Statistics Canada

Ottawa, Ontario
Canada
613-951-5314 (Phone)

Joanne Johnson

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-3547 (Phone)

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