Working Paper Series, FIEF - Trade Union Institute for Economic Research
Relative Demand for Skills in Swedish Manufacturing: Technology or Trade?
Abstract: The rate of change in the share of skilled labor has
increased steadily over the past 35 years in Swedish manufacturing. A
closer inspection of the period after 1970 indicates that while relative
supply changes of skilled labor seem to have been the main driving force
behind the growing skill shares in manufacturing industries over the period
1970-85, an acceleration in the relative demand for skills appears to have
propelled higher skill shares during the late 1980s and in the beginning of
the 1990s. Consistent with such a development is the finding of an
increasing degree of complementarity between knowledge capital and skilled
labor and that Swedish manufacturing firms, in recent years, have invested
heavily in R&D. There is also some support for the belief that intensified
competition from the South has increased the relative demand for skilled
labor. However, the impact appears to be small and concentrated to the
1970s and the beginning of the 1980s.
Keywords: Skill upgrading; Knowledge capital; Import competition; Outsourcing; (follow links to similar papers)
JEL-Codes: F14; J31; O33; (follow links to similar papers)
36 pages, April 29, 1999
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- This paper is published as:
Hansson, Pär, (2000), 'Relative Demand for Skills in Swedish Manufacturing: Technology or Trade?', Review of International Economics, Vol. 8, No. 3, pages 533-555
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