Are Technology transfers skill biased?
A growing consensus suggests that absorption of new technology has a bias towards skilled labour. We investigate the relationship between technology change and demand for skilled workers by taking into account an array of tests to find evidence if technology has important effects on skill premium. The paper adopts an exploratory approach. Using a panel data for Indian manufacturing industries over the 2001-02 and 2013-14 period, the paper depicts the rising trend of skilled workers, decomposes the trend into within and between industries, suggests capital-skill complementarity as an important factor behind increasing skill demand, and identifies whether skill biased technology change (SBTC) is the key determinant of the trend observed. Our results show that not enough evidence can be found in favour of SBTC in case of India, a pattern comparable to 1990s as shown by previous studies. The study contributes as a good starting point to understand what accounts for the relative changes in industrial skill intensity.
The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.
Citation : Virmani, S. (2019) Are Technology Transfers Skill Biased? The Indian Journal of Labour Economics (accepted, in press).
Research Institute : Institute for Applied Economics and Social Value (IAESV)
Peer Reviewed : Yes