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Trade, Technology and the Demand for Skills in Tunisia, 1998–2002

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  • Monia Ghazali

Abstract

Although many developing countries have experienced an increase in the relative demand for skilled workers leading to a rise in wage inequality, the role played by trade in this trend remains a matter of debate. Using a firm-level database covering manufacturing and non-manufacturing sectors in Tunisia over the period 1998–2002, this paper investigates whether trade-induced technological change could explain the increase in the relative demand for skilled workers. The empirical analysis is based on the estimation of an employment-share equation. Controlling for potential endogeneity issues, the results confirm that trade-induced technology adoption was a channel through which openness to trade raised the relative demand for skilled workers in Tunisia. Unlike trade, however, foreign investment in Tunisia did not appear to increase the demand for skills.

Suggested Citation

  • Monia Ghazali, 2012. "Trade, Technology and the Demand for Skills in Tunisia, 1998–2002," Oxford Development Studies, Taylor & Francis Journals, vol. 40(2), pages 213-230, June.
    • Handle: RePEc:taf:oxdevs:v:40:y:2012:i:2:p:213-230
    DOI: 10.1080/13600818.2012.677023
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    References listed on IDEAS

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    1. Maria Bas, 2008. "Trade, technology adoption and wage inequalities: theory and evidence," Working Papers halshs-00586858, HAL.
    2. Bas, Maria, 2008. "Trade, technology adoption and wage inequalities: theory and evidence," LSE Research Online Documents on Economics 28513, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Mourad Zmami & Ousama Ben-Salha, 2015. "Exchange rate movements and manufacturing employment in Tunisia: Do different categories of firms react similarly?," Economic Change and Restructuring, Springer, vol. 48(2), pages 137-167, May.
    2. Ben Salha, Ousama, 2013. "Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries," Economic Systems, Elsevier, vol. 37(4), pages 572-597.

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