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http://hdl.handle.net/10419/2890
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| Title: | | Relative wages, openness and skill-biased technological change  |
| Authors: | | Görg, Holger Strobl, Eric |
| Issue Date: | | 2002 |
| Series/Report no.: | | IZA Discussion paper series 596 |
| Abstract: | | Standard neo-classical trade theory predicts that trade liberalisation should cause a fall in wage inequality in developing countries through a decrease in the relative demand for skilled labour. Recent studies of a number of developing countries, however, find evidence to the contrary. Using a panel of manufacturing firms in the 1990s we investigate whether skillbiased technological change induced through imports of technology-intensive capital goods or export activity may provide an explanation for the increase in relative wages of skilled workers in Ghana. Estimates of a skilled worker relative demand equation based on a translog cost function show that changes in technology through a greater inflow of foreign machinery is found to be indeed consistent with skill-biased technological change in Ghana. |
| Subjects: | | wage inequality trade liberalisation skill-biased technological change |
| JEL: | | F14 O33 J31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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