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The Shaping of Skills:Wages, Education, Innovation

Author

Listed:
  • Valeria Cirillo

    (Department of Statistical Sciences, Sapienza University of Rome)

  • Mario Pianta

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

  • Leopoldo Nascia

    (Istituto Nazionale di Statistica)

Abstract

This paper investigates the role of wages, education and innovation in shaping employment structures in manufacturing and services of five European countries (Germany, France, Spain, Italy and United Kingdom), with specific respect to skills in the long term (1999-2011). Using data on employment by skill level and several measures of industries? technological efforts provided by four waves of Community Innovation Survey, we study the relationship between micro and macro factors and employment dynamics by skill. As micro factors, we consider the role of education and wages by employee; as macro elements we study the role of technologies and demand shaping job growth by skill group. Relying on a sectoral demand curve deriving from a translong cost function, we empirically estimate the relationship between wages, education, technologies, demand and employment. The results reveal that skills are differently affected by education, wages and technologies and a variety of employment patterns has to be detected. In 1999-2011, manufacturing shows a pattern of relative skill upgrading; conversely a smoothed polarizing trend is detected in services. While a process of relative skill upgrading is detected in manufacturing; conversely a smoothed polarizing trend is detected in services.

Suggested Citation

  • Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2014. "The Shaping of Skills:Wages, Education, Innovation," Working Papers 1406, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
    • Handle: RePEc:urb:wpaper:14_06
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    Cited by:

    1. Maurizio Franzini & Mario Pianta, 2015. "Four engines of inequality," LEM Papers Series 2015/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2015. "The Dynamics of Skills: Technology and Business Cycles," LEM Papers Series 2015/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
    4. Gunther Tichy, 2018. "Polarisierung der beruflichen Anforderungen durch die Digitalisierung?," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(3), pages 177-190, March.
    5. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2018. "Technology and Occupations in Business Cycles," Sustainability, MDPI, vol. 10(2), pages 1-25, February.
    6. Maurizio Franzini & Mario Pianta, 2015. "The making of inequality.Capital, labour and the distribution of income," Working Papers 1507, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.

    More about this item

    Keywords

    Innovation; Labor markets; Wages; Education.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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