Series 2004 No . 196 International Trade and Inter-Industry Wage Structure in Swedish Manufacturing-Evidence from matched employer-employee data
This study examines the inter-industry wage structure in Swedish manufacturing by using matched e... more This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and timevarying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical
International Trade and Inter-industry Wages Inter-industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-employee Data. International Trade and Inter-industry Wages
LUNDIN, Nannan and Lihong YUN (2004). International Trade and Inter-Industry Wage Structure in Sw... more LUNDIN, Nannan and Lihong YUN (2004). International Trade and Inter-Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-employee Data. This study examines the inter-industry wage structure in Swedish manufacturing sector by using matched employer-employee data for the period 1996 to 2000. It uses, first, detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, controlling for effects of domestic competition and technical progress, it examines the impact of international trade on the wage premiums. Results estimated in the context of the specific factor model of international trade confirm that there are tangible consequences for income distribution from international trade. Further they indicate that industries that export in particular those to high-income countries have higher wage-premiums whereas industries that face import competition from low-income countries have lower wage premiums. It argu...
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sampl...
Determinants of labour productivity in the manufacturing sector of Guangdong, China
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sampl...
INTERNATIONAL TRADE AND INDUSTRY- SPECIFIC SKILL PREMIUM: Evidence from matched employer-employee data in Swedish manufacturing
This paper examines how international trade has affected industry-specific skill premiums in the ... more This paper examines how international trade has affected industry-specific skill premiums in the Swedish manufacturing, applying matched employer-employee data for the period 1996 to 2000. We use detailed individual and job characteristics to estimate industry-specific and time-varying skill premiums. The impact of international trade on skill premiums is investigated, controlling for effects of domestic competition and technical progress. The empirical results suggest that industry-specific skill premiums, in addition to industry affiliation indeed provide another channel, through which international trade affects the wage distribution between skilled and unskilled workers. The impact of trade on skill premiums can be both positive and negative, depending on the nature of competition, but not necessarily on the distinction between import competing and export competitive industries .
Demand for labour and technical progress in the Swedish manufacturing sector
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sample with outliers) on productivity depend on the level of industry concentration. Paper [2] investigates of the determinants of export intensity and of FDI presence among the manufacturing industries from the Guangdong Province of China. The study is based on a three-digit level set of panel data collected for 1998-2002 from 158 manufacturing industries. The results indicate that export-intensity and FDI-presence are high in industries with low physical capital intensity, low labour costs and low R&D intensity. Industries with less state-participation (or high FDI-presence) are likely to enjoy comparatively high levels of export-intensity. They indicate further that the FDI emanating from non-dragon economies (those other than Hong Kong, Macao and Taiwan) and low labour costs are fundamental and foremost for sustained export performance. Paper [3] investigates the effects of trade and innovation via technical progress on employment in a dynamic framework, based on a panel of Swedish manufacturing firms in the 1990s. The main results show that the employment effect of sales is positive whilst the effect of firms’ own wage is negative. The firms’ exports do not necessarily induce labour saving technical progress instead they induce capital-saving technical progress which leads to creation of jobs. The effects of R&D intensity (or R&D expenditure) via technical progress on employment are positive at the firm level. Paper [4] (co-authored with Nannan Lundin) examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical progress. Our results indicate that industries that face intensive import competition from low-income countries have lower wage premiums. Surprisingly, the wage premiums are not related to export intensities. Furthermore, technical progress, measured by investment in R&D activity, appears to enhance inter-industry wage premiums.
Technology Progress, Efficiency, and Scale of Economy in Post-reform China
This paper analyzes the productivity change of the thirty provinces in China’s post-reform econom... more This paper analyzes the productivity change of the thirty provinces in China’s post-reform economy. The productivity change is estimated from the stochastic frontier model, in which the maximum likelihood estimation is applied to an augmented logarithmic production function incorporated with a human capital variable. The empirical results show technical progress is the main contributor to productivity growth and the scale
Economic Performance of Human Capital in Post-Reform China
Chinese Economy, 2009
Provincial data are used to examine the economic performance of China's human capita... more Provincial data are used to examine the economic performance of China's human capital, adjusted by mortality and interprovincial migration figures. The perpetual-inventory approach is used to compile China's human capital, which is further decomposed into skilled, unskilled, and different educational endowments. Statistical estimates are extended to the performance of four regions. The various human capital indicators are examined with different infrastructure variables. The empirical results show that human capital endowed with higher education is scarce across provinces, but skilled human capital can be improved by increasing the amount of secondary school education. Consideration of openness factors shows that foreign direct investment is complementary to the level of human capital endowed with higher education.
This study examines the inter-industry wage structure in Swedish manufacturing by using matched e... more This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and timevarying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical progress. Our results indicate that industries that face intensive import competition from lowincome countries have lower wage premiums. Surprisingly, the wage premiums are not related to export intensities. Furthermore, technical progress, measured by investment in R&D activity, appears to enhance inter-industry wage premiums.
Controlling firms' sales in the labour demand model, this paper investigates effects of trade and... more Controlling firms' sales in the labour demand model, this paper investigates effects of trade and R&D via technical progress on labour demand in a dynamic framework, based on a panel of Swedish manufacturing firms for 1990s. The main results of this study indicate that employment elasticities with respect to different characteristics of firms (wages, total sales, exports and R&D efforts) and industrial import penetration could vary across respective skilled sectors. There is some indication to that import penetration from fourteen 'old members' of European Union could induce capital-saving technical progress and result in the rise in demand for labour for firms in medium-low skilled sector, whilst those from the ten 'new members' of European Union could induce x-efficiency and laboursaving technical progress for firms in low-skilled sector. Furthermore, the effects of R&D intensity on demand for labour are positive and significant for firms in medium-high-skilled and high-skilled sectors.
International Journal of Logistics Systems and Management, 2006
This paper investigates of the determinants of export intensity and of FDI presence among the man... more This paper investigates of the determinants of export intensity and of FDI presence among the manufacturing industries from the Guangdong Province of the People's Republic of China. The study is based on a three-digit level set of panel data collected for 1998-2002 from 158 manufacturing industries. The results indicate that export-intensity and FDI-presence are high in industries with low physical capital intensity, low labour costs and low R&D intensity. Industries with less state-participation or high FDI-presence are likely to enjoy higher levels of export intensity. They indicate further that the FDI emanating from non-dragon economies (those other than Hong Kong, Macao and Taiwan) and low labour costs are fundamental and foremost for sustained export performance.
This paper investigates the determinants of labour demand across the manufacturing sectors in Chi... more This paper investigates the determinants of labour demand across the manufacturing sectors in China by using a three-digit level set of panel data collected from 158 manufacturing industries for 1998-2007. The estimation results confirm that increasing output will lead to a rise in the demand for labour, while higher wages will result in a decline in labour demand. Furthermore, it is shown that the total effects of exports on the elasticity of labour demand can be positive or negative, depending on the nature of the sectors and the regions. Technical progress, however, can result in less labour demand, except for the medium-to high-technology sector in the Pan Pearl River Delta region.
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter- ...
Decomposition of Economic and Productivity Growth in Post-reform China
This paper examines and applies the theoretical foundation of the decomposition of economic and p... more This paper examines and applies the theoretical foundation of the decomposition of economic and productivity growth to the thirty provinces in China’s post-reform economy. The four attributes of economic growth are input growth, adjusted economies of scale effect, technical progress, and efficiency growth. A stochastic frontier model is used to estimates the growth attributes, and a human capital variable is
Series 2004 No . 196 International Trade and Inter-Industry Wage Structure in Swedish Manufacturing-Evidence from matched employer-employee data
This study examines the inter-industry wage structure in Swedish manufacturing by using matched e... more This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and timevarying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical
International Trade and Inter-industry Wages Inter-industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-employee Data. International Trade and Inter-industry Wages
LUNDIN, Nannan and Lihong YUN (2004). International Trade and Inter-Industry Wage Structure in Sw... more LUNDIN, Nannan and Lihong YUN (2004). International Trade and Inter-Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-employee Data. This study examines the inter-industry wage structure in Swedish manufacturing sector by using matched employer-employee data for the period 1996 to 2000. It uses, first, detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, controlling for effects of domestic competition and technical progress, it examines the impact of international trade on the wage premiums. Results estimated in the context of the specific factor model of international trade confirm that there are tangible consequences for income distribution from international trade. Further they indicate that industries that export in particular those to high-income countries have higher wage-premiums whereas industries that face import competition from low-income countries have lower wage premiums. It argu...
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sampl...
Determinants of labour productivity in the manufacturing sector of Guangdong, China
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sampl...
INTERNATIONAL TRADE AND INDUSTRY- SPECIFIC SKILL PREMIUM: Evidence from matched employer-employee data in Swedish manufacturing
This paper examines how international trade has affected industry-specific skill premiums in the ... more This paper examines how international trade has affected industry-specific skill premiums in the Swedish manufacturing, applying matched employer-employee data for the period 1996 to 2000. We use detailed individual and job characteristics to estimate industry-specific and time-varying skill premiums. The impact of international trade on skill premiums is investigated, controlling for effects of domestic competition and technical progress. The empirical results suggest that industry-specific skill premiums, in addition to industry affiliation indeed provide another channel, through which international trade affects the wage distribution between skilled and unskilled workers. The impact of trade on skill premiums can be both positive and negative, depending on the nature of competition, but not necessarily on the distinction between import competing and export competitive industries .
Demand for labour and technical progress in the Swedish manufacturing sector
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter-industry wage premiums. Paper [1] uses shift-share method and augmented production function-approach. This research investigates the determinants of the growth of labour productivity in the manufacturing sector. The research is based on a three-digit level set of data for 170 industries from the manufacturing sector of Guangdong province, China, for periods 1995-1997 and 1998-2001. The result of this research suggests that reallocation of work-force across industries play a minor role in the growth of aggregate productivity. It shows that growth of productivity could be attributed to accumulation of physical and human capital. There is evidence to the existence of productivity effect of market oriented reforms. Further, it suggests that overall effects of export and FDI (for the full sample with outliers) on productivity depend on the level of industry concentration. Paper [2] investigates of the determinants of export intensity and of FDI presence among the manufacturing industries from the Guangdong Province of China. The study is based on a three-digit level set of panel data collected for 1998-2002 from 158 manufacturing industries. The results indicate that export-intensity and FDI-presence are high in industries with low physical capital intensity, low labour costs and low R&D intensity. Industries with less state-participation (or high FDI-presence) are likely to enjoy comparatively high levels of export-intensity. They indicate further that the FDI emanating from non-dragon economies (those other than Hong Kong, Macao and Taiwan) and low labour costs are fundamental and foremost for sustained export performance. Paper [3] investigates the effects of trade and innovation via technical progress on employment in a dynamic framework, based on a panel of Swedish manufacturing firms in the 1990s. The main results show that the employment effect of sales is positive whilst the effect of firms’ own wage is negative. The firms’ exports do not necessarily induce labour saving technical progress instead they induce capital-saving technical progress which leads to creation of jobs. The effects of R&D intensity (or R&D expenditure) via technical progress on employment are positive at the firm level. Paper [4] (co-authored with Nannan Lundin) examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical progress. Our results indicate that industries that face intensive import competition from low-income countries have lower wage premiums. Surprisingly, the wage premiums are not related to export intensities. Furthermore, technical progress, measured by investment in R&D activity, appears to enhance inter-industry wage premiums.
Technology Progress, Efficiency, and Scale of Economy in Post-reform China
This paper analyzes the productivity change of the thirty provinces in China’s post-reform econom... more This paper analyzes the productivity change of the thirty provinces in China’s post-reform economy. The productivity change is estimated from the stochastic frontier model, in which the maximum likelihood estimation is applied to an augmented logarithmic production function incorporated with a human capital variable. The empirical results show technical progress is the main contributor to productivity growth and the scale
Economic Performance of Human Capital in Post-Reform China
Chinese Economy, 2009
Provincial data are used to examine the economic performance of China's human capita... more Provincial data are used to examine the economic performance of China's human capital, adjusted by mortality and interprovincial migration figures. The perpetual-inventory approach is used to compile China's human capital, which is further decomposed into skilled, unskilled, and different educational endowments. Statistical estimates are extended to the performance of four regions. The various human capital indicators are examined with different infrastructure variables. The empirical results show that human capital endowed with higher education is scarce across provinces, but skilled human capital can be improved by increasing the amount of secondary school education. Consideration of openness factors shows that foreign direct investment is complementary to the level of human capital endowed with higher education.
This study examines the inter-industry wage structure in Swedish manufacturing by using matched e... more This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and timevarying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical progress. Our results indicate that industries that face intensive import competition from lowincome countries have lower wage premiums. Surprisingly, the wage premiums are not related to export intensities. Furthermore, technical progress, measured by investment in R&D activity, appears to enhance inter-industry wage premiums.
Controlling firms' sales in the labour demand model, this paper investigates effects of trade and... more Controlling firms' sales in the labour demand model, this paper investigates effects of trade and R&D via technical progress on labour demand in a dynamic framework, based on a panel of Swedish manufacturing firms for 1990s. The main results of this study indicate that employment elasticities with respect to different characteristics of firms (wages, total sales, exports and R&D efforts) and industrial import penetration could vary across respective skilled sectors. There is some indication to that import penetration from fourteen 'old members' of European Union could induce capital-saving technical progress and result in the rise in demand for labour for firms in medium-low skilled sector, whilst those from the ten 'new members' of European Union could induce x-efficiency and laboursaving technical progress for firms in low-skilled sector. Furthermore, the effects of R&D intensity on demand for labour are positive and significant for firms in medium-high-skilled and high-skilled sectors.
International Journal of Logistics Systems and Management, 2006
This paper investigates of the determinants of export intensity and of FDI presence among the man... more This paper investigates of the determinants of export intensity and of FDI presence among the manufacturing industries from the Guangdong Province of the People's Republic of China. The study is based on a three-digit level set of panel data collected for 1998-2002 from 158 manufacturing industries. The results indicate that export-intensity and FDI-presence are high in industries with low physical capital intensity, low labour costs and low R&D intensity. Industries with less state-participation or high FDI-presence are likely to enjoy higher levels of export intensity. They indicate further that the FDI emanating from non-dragon economies (those other than Hong Kong, Macao and Taiwan) and low labour costs are fundamental and foremost for sustained export performance.
This paper investigates the determinants of labour demand across the manufacturing sectors in Chi... more This paper investigates the determinants of labour demand across the manufacturing sectors in China by using a three-digit level set of panel data collected from 158 manufacturing industries for 1998-2007. The estimation results confirm that increasing output will lead to a rise in the demand for labour, while higher wages will result in a decline in labour demand. Furthermore, it is shown that the total effects of exports on the elasticity of labour demand can be positive or negative, depending on the nature of the sectors and the regions. Technical progress, however, can result in less labour demand, except for the medium-to high-technology sector in the Pan Pearl River Delta region.
The aims of the four treatises contained in here are to investigate the determinants of export (a... more The aims of the four treatises contained in here are to investigate the determinants of export (and FDI) and possible impacts of international trade on labour productivity, labour demand and inter- ...
Decomposition of Economic and Productivity Growth in Post-reform China
This paper examines and applies the theoretical foundation of the decomposition of economic and p... more This paper examines and applies the theoretical foundation of the decomposition of economic and productivity growth to the thirty provinces in China’s post-reform economy. The four attributes of economic growth are input growth, adjusted economies of scale effect, technical progress, and efficiency growth. A stochastic frontier model is used to estimates the growth attributes, and a human capital variable is
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