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From Socialism to Capitalism: Low-Skill-Biased Change in the Baltics during the Transition and Beyond

Author

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  • Christenko Aleksandr

    (Visionary Analytics and ISM University of Management and Economics, M. Valančiaus 1A, Vilnius LT-03155, Lithuania)

  • Martinaitis Žilvinas

    (Visionary Analytics and Vilnius University, M. Valančiaus 1A, Vilnius LT-03155, Lithuania)

  • Krūminas Pijus

    (Visionary Analytics and ISM University of Management and Economics, M. Valančiaus 1A, Vilnius LT-03155, Lithuania)

Abstract

How did technological upgrading in the Baltics during the transition from planned to market economy affect labour? Existing academic literature would imply a skill-biased or polarising effect. However, we find that the opposite is likely true—technological upgrading predominantly benefited lower skilled workers. This is explained by an abundance of lower skilled labour, which fostered the usage of less advanced technologies that such workers could utilise. This article contributes to the discussion on the relationship between technology and labour by highlighting that technological upgrading may lead to low-skill-biased change.

Suggested Citation

  • Christenko Aleksandr & Martinaitis Žilvinas & Krūminas Pijus, 2023. "From Socialism to Capitalism: Low-Skill-Biased Change in the Baltics during the Transition and Beyond," TalTech Journal of European Studies, Sciendo, vol. 13(1), pages 253-285, June.
    • Handle: RePEc:vrs:bjeust:v:13:y:2023:i:1:p:253-285:n:7
    DOI: 10.2478/bjes-2023-0012
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    References listed on IDEAS

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    4. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    5. Orhun Sevinc, 2017. "Skill-Biased Technical Change and Labor Market Polarization: The Role of Skill Heterogeneity Within Occupations," Discussion Papers 1728, Centre for Macroeconomics (CFM).
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