What Explains Skill Upgrading in Less Developed Countries?

47 Pages Posted: 20 Aug 2000 Last revised: 14 Sep 2001

See all articles by Nina Pavcnik

Nina Pavcnik

Dartmouth College - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: August 2000

Abstract

Although many developing countries have experienced growing income inequality and an increase in the relative demand for skilled workers during the 1980s, the sources of this trend remain a puzzle. This paper examines whether investment and adoption of skill-biased technology have contributed to within-industry skill upgrading using plant-level data from Chile. Using semiparametric and parametric approaches, I investigate whether plant-level measures of capital and investment, the use of imported materials, foreign technical assistance, and patented technology affect the relative demand for skilled workers. I find positive relationship between these measures and skill upgrading. Capital deepening and the adoption of skill biased technology therefore might contribute to the increased relative demand for skilled workers within industries.

Suggested Citation

Pavcnik, Nina, What Explains Skill Upgrading in Less Developed Countries? (August 2000). NBER Working Paper No. w7846. Available at SSRN: https://ssrn.com/abstract=239091

Nina Pavcnik (Contact Author)

Dartmouth College - Department of Economics ( email )

6106 Rockefeller Hall
Hanover, NH 03755
United States
603-646-2537 (Phone)
603-646-2122 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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