Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/192275
Authors: 
Lindquist, Kjersti-Gro
Skjerpen, Terje
Year of Publication: 
2000
Series/Report no.: 
Discussion Papers No. 293
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
In most OECD-countries, labour demand has shifted from unskilled to skilled over time. Many analyses of this phenomenon focus on either the effect of technical change, capital-skill complementarity or labour-labour substitution. We present a more general analysis of labour demand in Norwegian manufacturing, and estimate a multivariate error-correction model of the cost-shares of skilled and unskilled labour, materials and energy on industry-level panel data. The results show that skilled-biased technical change, primarily due to a positive effect on skilled labour and less due to a negative effect on unskilled labour, as well as labour-labour substitution and capital stock growth are important for explaining the shift in Norwegian labour demand. Of minor importance is also non-homotheticity.
Subjects: 
Heterogeneous labour
Dynamic factor demand
Panel data
JEL: 
C33
E23
Document Type: 
Working Paper

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