Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108215
Authors: 
Koren, Miklós
Csillag, Márton
Year of Publication: 
2011
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2011/14
Abstract: 
We estimate the effect of imported machines on the wages of machine operators utilizing Hungarian linked employer-employee data. We infer exposure to imported machines from detailed trade statistics of the firm and the occupation description of the worker. We find that workers exposed to imported machines earn about 8 percent higher wages than other machine operators at the same firm. When we proxy for unobserved worker characteristics, we find a significant 3 percent wage premium, suggesting that the relationship is causal. The return to schooling is also higher on imported machines. We build a simple matching model consistent with these findings. Our findings suggest that machine imports can be an important channel through which skill-biased technical change reaches less developed and emerging economies.
Subjects: 
imported machinery
capital-skill complementarity
wages
JEL: 
F16
ISBN: 
978-615-5024-48-1
Document Type: 
Working Paper

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