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Globalization, Technology and Skills: Evidence from Turkish Longitudinal Microdata

Ilina Srour, Erol Taymaz and Marco Vivarelli

Abstract:
This paper explores the causes of skill-based employment differentials within the Turkish manufacturing sector over the period 1980-2001. Turkey is taken as an example of a developing economy that, in that period, had been technologically advancing and becoming increasingly integrated with the world market. The empirical analysis is performed at firm level within a dynamic framework using a two-equation model that depicts the employment trends for skilled and unskilled workers separately. In particular, the System Generalized Method of Moments (GMM-SYS) procedure is applied to a panel dataset comprised of 17,462 firms. Our results confirm the theoretical expectation that developing countries face the phenomena of skill-biased technological change and skill-enhancing technology import, both leading to increasing the employment gap between skilled and unskilled workers. In particular, strong evidence of an absolute skill bias emerges: both domestic and imported technologies increase the demand for skilled workers only, not significantly affecting the demand for the unskilled labor. Finally, “learning by exporting” also appears to have a (relative) skill biased impact, increasing the demand for skilled workers to a much larger extent than that for the unskilled.  

Full Text (in Adobe Acrobat format)

2014

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  • 14/15 Financial Integration and Growth: A Nonlinear Panel Data Analysis
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  • 14/14 Wage Inequality and Wage Mobility in Turkey
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  • 14/13 Structural Change in Turkish External Trade: Evidence from BEC Sectors
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  • 14/12 Reel Doviz Kuru ve Turkiye Dis Ticaret Dinamikleri
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  • 14/11 Can Financial Stability be Maintained in Developing Countries after the Global Crisis: The Role of External Financial Shocks?
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  • 14/10 Turkiye Enflasyon Hedeflemesi Deneyiminde Doviz Kurunun Rolu
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  • 14/09 Defining and measuring informality in the Turkish labor market
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  • 14/08 Does private tutoring increase students’ academic performance? Evidence from Turkey
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  • 14/07 Gelir Hareketliligi Esitsizlikleri Azaltabilir mi? Turkiye Ornegi
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  • 14/06 Health Behaviors and Education in Turkey
    Aysit Tansel and Deniz Karaoglan

  • 14/05 Globalization, Technology and Skills: Evidence from Turkish Longitudinal Microdata
    Ilina Srour , Erol Taymaz and Marco Vivarelli

  • 14/04 Exchange Rate Regimes and Business Cycles: An Empirical Investigation
    Fatma Pinar Erdem and Erdal Ozmen

  • 14/03 Entry to Foreign Markets and Productivity: Evidence from a Matched Sample of Turkish Manufacturing Firms
    Basak Dalgic , Burcu Fazlioglu and Deniz Karaoglan

  • 14/02 Impact of Internal Migration on Political Participation in Turkey
    Ali T. Akarca and Aysit Tansel

  • 14/01 Changes in Global Trade Patterns and Women's Employment in Manufacturing: an Analysis over the Period of Asianization and De-industrialization
    Burca Kizilirmak , Emel Memis , Sirin Saracoglu and Ebru Voyvoda
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