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What's trade got to do with it? Relative Demand for Skills within Swedish Manufacturing. CEPS Working Document No. 162, March 2001

Anderton, Bob and Brenton, Paul and Oscarsson, Eva. (2001) What's trade got to do with it? Relative Demand for Skills within Swedish Manufacturing. CEPS Working Document No. 162, March 2001. [Working Paper]

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    Abstract

    This paper seeks to identify the contribution of trade and technological change to the increase in inequality between skilled and unskilled workers in Sweden since the 1970s. An empirical approach is adopted which allows for the outsourcing of the low-skill parts of the production chain within industries to low-wage locations and is applied to detailed industry and trade data, the latter distinguishing between low-wage sources of imports and OECD countries. Another feature of the study is the use of data on patents to capture technological change. The paper finds that, in contrast to previous studies, trade with low-wage countries may have contributed to the rise in inequality in Swedish manufacturing. Here we identify this effect through changes in relative import prices and through changes in import penetration measured in volume terms. Changes in import penetration measured in value terms, which have been used in previous studies, are not found to be significant. In addition imports seem to have had a larger effect on inequality in high-skill intensive sectors rather than the low-skill sectors. The empirical results also suggest that the increased use of technology also played a role in creating greater inequality between skilled and unskilled workers in Sweden with the magnitude of this impact increasing in the 1990s.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > intellectual property
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    Countries > Sweden
    EU policies and themes > Policies & related activities > economic and financial affairs > trade policy
    EU policies and themes > EU institutions & developments > institutional development/policy > historical development of EC (pre-1986)
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > CEPS Working Documents
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 04 Oct 2009
    Page Range: p. 25
    Last Modified: 15 Feb 2011 18:16
    URI: http://aei.pitt.edu/id/eprint/11681

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