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The Micro-Dynamics of Skill Mix Changes in a Dual Labor Market: The Spanish Manufacturing Experience

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  • Adela Luque
  • C.J. Krizan

Abstract

As in many other developed countries, the share of skilled workers in Spain�s labor force dramatically increased during the 1990s. This paper decomposes the aggregate skill mix change by a set of key firm characteristics and in the context of Spain�s dual labor market. We find that continuing firms were the major drivers of skill mix growth and that expanding firms in particular increased their ratio of skilled workers. Net entry played a smaller but positive role due to higher-skilled entrants and lower-skilled exiters. Finally, we find that although firms with higher concentrations of temporary workers make bigger employment changes overall, firms� low-skilled employment is more strongly pro-cyclical than is high skilled employment.

Suggested Citation

  • Adela Luque & C.J. Krizan, 2009. "The Micro-Dynamics of Skill Mix Changes in a Dual Labor Market: The Spanish Manufacturing Experience," Working Papers 09-12, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:09-12
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    File URL: https://www2.census.gov/ces/wp/2009/CES-WP-09-12.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Microdata; Skill Mix; Decomposition Methodology; Business Cycle; Dual Labor Markets;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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    This paper has been announced in the following NEP Reports:

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