Negative skill sorting across production chains
Data(s) |
02/03/2016
02/03/2016
01/03/2016
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Resumo |
Previous literature generally predicts that individuals with higher skills work in industries with longer production chains. However, the opposite skill-sorting pattern, a "negative skill-sorting" phenomenon, is also observed in reality. This paper proposes a possible mechanism by which both cases can happen and shows that negative skill sorting is more likely to occur when the quality of intermediate inputs degrade rapidly (or improves slowly) along the production chain. We empirically confirm our theoretical prediction by using country-industry panel data. The results are robust regardless of estimation method, control variables, and industry coverage. This study has important implications for understanding countries' comparative advantages and development patterns. |
Identificador |
IDE Discussion Paper. No. 557. 2016.3 http://hdl.handle.net/2344/1504 IDE Discussion Paper 557 |
Idioma(s) |
en eng |
Publicador |
Institute of Developing Economies, JETRO 日本貿易振興機構アジア経済研究所 |
Palavras-Chave | #Labor market #Human resources #Manufacturing industries #Skill sorting #Input quality #Production chains #366.2 #G World,others #J24 - Human Capital; #L23 - Organization of Production |
Tipo |
Working Paper Technical Report |