Skill Biased Technological and Organizational Change: Estimating a Mixed Simultaneous Equation Model Using the Iab Establishment Panel

51 Pages Posted: 1 Oct 2002

See all articles by Reinhard Hujer

Reinhard Hujer

University of Frankfurt; IZA Institute of Labor Economics

Marco Caliendo

University of Potsdam; Institute for the Study of Labor (IZA)

Dubravko Radic

University of Frankfurt - Economics and Business Administration Area

Date Written: September 2002

Abstract

Recent years have brought growing evidence for an increasing labour demand for high skilled and a deterioration of the labour position of less skilled employees. The two most common explanations for this finding are an increasing international trade and a skill biased technological change. Another possible source for this phenomenon, that has received less attention in the recent discussion, are organizational changes that might affect labour demand in an asymmetric way, too. This paper analyses the interdependencies between labour demand for high and low skilled employees, innovation activities and organizational changes. To this aim mixed simultaneous equation models are estimated using the IAB establishment dataset collected by the German Federal Employment Office. Our empirical results indicate that technological change in the form of product innovations increases the demand for high and reduces the demand for low skilled employees. Organizational changes on the other hand do not have any significant effect on the labour demand, but are closely related to innovations.

Keywords: Mixed Simultaneous Equation Models, Labour Demand, Skilled Biased Technological and Organizational Change

JEL Classification: C35, D24, L23, O33

Suggested Citation

Hujer, Reinhard and Caliendo, Marco and Radic, Dubravko, Skill Biased Technological and Organizational Change: Estimating a Mixed Simultaneous Equation Model Using the Iab Establishment Panel (September 2002). IZA Discussion Paper No. 566. Available at SSRN: https://ssrn.com/abstract=331082

Reinhard Hujer (Contact Author)

University of Frankfurt ( email )

Institute for Statistics and Econometrics
60054 Frankfurt
Germany
+49 798 23673 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Marco Caliendo

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)

HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Dubravko Radic

University of Frankfurt - Economics and Business Administration Area ( email )

Mertonstrasse 17-25
Frankfurt am Main, D-60325
Germany
+49 69 798 28188 (Phone)
+49 69 798 23673 (Fax)

HOME PAGE: http://www.wiwi.uni-frankfurt.de/Professoren/hujer/dubi.html

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