Arbeitspapier

Relative wages, openness and skill-biased technological change

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 596

Classification
Wirtschaft
Empirical Studies of Trade
Technological Change: Choices and Consequences; Diffusion Processes
Wage Level and Structure; Wage Differentials
Subject
trade liberalisation
skill-biased technological change
wage inequality
Lohnstruktur
Qualifikation
Außenhandelsliberalisierung
Technologietransfer
Technischer Fortschritt
Schätzung
Ghana

Event
Geistige Schöpfung
(who)
Görg, Holger
Strobl, Eric
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2002

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Görg, Holger
  • Strobl, Eric
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2002

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