TY  - JOUR
AU  - Pavcnik,Nina
TI  - What Explains Skill Upgrading in Less Developed Countries?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7846
PY  - 2000
Y2  - August 2000
UR  - http://www.nber.org/papers/w7846
L1  - http://www.nber.org/papers/w7846.pdf
N1  - Author contact info:
Nina Pavcnik
Department of Economics
6106 Rockefeller Center
Dartmouth College
Hanover, NH  03755
Tel: 603/646-2537
Fax: 603/646-2122
E-Mail: nina.pavcnik@dartmouth.edu
AB  - Although many developing countries have experienced growing income inequality and an increase in the relative demand for skilled workers during the 1980s, the sources of this trend remain a puzzle.  This paper examines whether investment and adoption of skill-biased technology have contributed to within-industry skill upgrading using plant-level data from Chile. Using semiparametric and parametric approaches, I investigate whether plant-level measures of capital and investment, the use of imported materials, foreign technical assistance, and patented technology affect the relative demand for skilled workers.  I find positive relationship between these measures and skill upgrading.  Capital deepening and the adoption of skill biased technology therefore might contribute to the increased relative demand for skilled workers within industries.
ER  -