IDEAS home Printed from https://ideas.repec.org/p/uwo/uwowop/9703.html
   My bibliography  Save this paper

Employment Occupational Structure, Technological Capital and Reorganization of Production

Author

Abstract

This paper analyzes the role of skill-biased technological progress on the recent changes in the occupational structure of Spanish manufacturing employment. Our dataset consists of a panel of Spanish manufacturing firms during the period 1986-1991. We confirm a puzzle that has been found in other OECD countries: investment in capital inputs is clearly procyclical, but destruction of unskilled jobs and creation of skilled jobs have been concentrated during the recession. However, we also find that the number of firms who invest by first time in technological capital has been clearly countercyclical. Based on this evidence, we estimate a dynamic model where firms take discrete decisions about what labor and capital inputs to use, and continuous decisions on the amount of each selected input. After controlling for individual heterogeneity and self-selection we find that these two decisions have different effects on occupational structure. In particular, we find that for new innovative firms the introduction of technological capital has significant and sizeable effects on the occupational structure of employment.

Suggested Citation

  • Aguirregabiria, Victor & Alonso-Borrego, Cesar, 1997. "Employment Occupational Structure, Technological Capital and Reorganization of Production," University of Western Ontario, Departmental Research Report Series 9703, University of Western Ontario, Department of Economics.
    • Handle: RePEc:uwo:uwowop:9703
    as

    Download full text from publisher

    File URL: https://ir.lib.uwo.ca/cgi/viewcontent.cgi?article=1419&context=economicsresrpt
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Machin, Steve & Van Reenen, John, 1996. "Technology and Changes in Skill Structure: Evidence from an International Panel of Industries," CEPR Discussion Papers 1434, C.E.P.R. Discussion Papers.
    2. Juan J. Dolado & Ramón Gómez, 1995. "Creación y destrucción de empleo en el sector privado manufacturero español: un análisis descriptivo," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 371-393, September.
    3. Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 477-494.
    4. Cooper, Russell & Haltiwanger, John, 1993. "The Aggregate Implications of Machine Replacement: Theory and Evidence," American Economic Review, American Economic Association, vol. 83(3), pages 360-382, June.
    5. Ricardo J. Caballero & Mohamad L. Hammour, 1996. "On the Timing and Efficiency of Creative Destruction," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 805-852.
    6. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    7. Caballero, Ricardo J & Hammour, Mohamad L, 1994. "The Cleansing Effect of Recessions," American Economic Review, American Economic Association, vol. 84(5), pages 1350-1368, December.
    8. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 819-863.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March.
    2. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Guido Friebel & Gerard McCullough & Laura Padilla Angulo, 2014. "Patterns of Restructuring The US Class 1 Railroads from 1984 to 2004," Journal of Transport Economics and Policy, University of Bath, vol. 48(1), pages 115-135, January.
    4. Natália Barbosa & Ana Faria, 2008. "Technology adoption: does labour skill matter? Evidence from Portuguese firm-level data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(2), pages 179-194, April.
    5. Inés P. Murillo, 2011. "Human capital obsolescence: some evidence for Spain," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(4), pages 426-445, July.
    6. Even Caroli & John Van Reenen, 1999. "Organization, skill and technology: evidence from a panel of British and French establishments," IFS Working Papers W99/23, Institute for Fiscal Studies.
    7. Mariacristina Piva & Marco Vivarelli, 2002. "The Skill Bias: Comparative evidence and an econometric test," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 347-357.
    8. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    9. Bruno Cesar Araújo & Francesco Bogliacino & Marco Vivarelli, 2011. "Technology, trade and skills in Brazil: Some evidence from microdata," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1171, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    10. Araújo, Bruno Cesar & Bogliacino, Francesco & Vivarelli, Marco, 2009. "The Role of "Skill Enhancing Trade" in Brazil: Some Evidence from Microdata," IZA Discussion Papers 4213, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aguirregabiria, Victor & Alonso-Borrego, Cesar, 2001. "Occupational structure, technological innovation, and reorganization of production," Labour Economics, Elsevier, vol. 8(1), pages 43-73, January.
    2. Steven J. Davis & John Haltiwanger, 1998. "Measuring Gross Worker and Job Flows," NBER Chapters, in: Labor Statistics Measurement Issues, pages 77-122, National Bureau of Economic Research, Inc.
    3. Matthias Kehrig, 2011. "The Cyclicality of Productivity Dispersion," 2011 Meeting Papers 484, Society for Economic Dynamics.
    4. Ouyang, Min, 2009. "The scarring effect of recessions," Journal of Monetary Economics, Elsevier, vol. 56(2), pages 184-199, March.
    5. Erik Canton & Harald Uhlig, 1999. "Growth and the cycle: Creative destruction versus entrenchment," Journal of Economics, Springer, vol. 69(3), pages 239-266, October.
    6. Karen Mumford & Peter N. Smith, "undated". "Job Reallocation and Average Job Tenure: Theory and Workplace Evidence from Australia," Discussion Papers 96/46, Department of Economics, University of York.
    7. R. Jason Faberman, 2003. "Job Flows and Establishment Characteristics: Variations Across U.S. Metropolitan Areas," William Davidson Institute Working Papers Series 2003-609, William Davidson Institute at the University of Michigan.
    8. Karen Mumford & Peter N. Smith, 2004. "Job Reallocation, Employment Change And Average Job Tenure: Theory And Workplace Evidence From Australia," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 402-421, August.
    9. repec:eee:labchp:v:3:y:1999:i:pb:p:2711-2805 is not listed on IDEAS
    10. Uhlig, H.F.H.V.S. & Canton, E.J.F., 1997. "Growth and the Cycle : Creative Destruction versus Entrenchment," Other publications TiSEM ea1ea4bf-dee0-4bfc-822a-0, Tilburg University, School of Economics and Management.
    11. Julián Messina & Giovanna Vallanti, 2007. "Job Flow Dynamics and Firing Restrictions: Evidence from Europe," Economic Journal, Royal Economic Society, vol. 117(521), pages 279-301, June.
    12. Lucia Foster & Cheryl Grim & John Haltiwanger, 2016. "Reallocation in the Great Recession: Cleansing or Not?," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 293-331.
    13. Ravi Balakrishnan, 2001. "The interaction of firing costs and on-the-job search: an application of a search theoretic model to the Spanish labour market," Working Papers 0102, Banco de España.
    14. Jonas D. M. Fisher & Jeffrey R. Campbell, 2000. "Aggregate Employment Fluctuations with Microeconomic Asymmetries," American Economic Review, American Economic Association, vol. 90(5), pages 1323-1345, December.
    15. Marcela Eslava & John Haltiwanger & Adriana Kugler & Maurice Kugler, 2010. "Factor Adjustments after Deregulation: Panel Evidence from Colombian Plants," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 378-391, May.
    16. Naomi N. Griffin, 2005. "Labor Adjustment, Productivity and Output Volatility: An Evaluation of Japan's Employment Adjustment Subsidy: Working Paper 2005-10," Working Papers 17567, Congressional Budget Office.
    17. Konings, Jozef & Magerman, Glenn & Van Esbroeck, Dieter, 2023. "The impact of firm-level Covid rescue policies on productivity growth and reallocation," European Economic Review, Elsevier, vol. 157(C).
    18. Carlos Carreira & Paulino Teixeira, 2016. "Entry and exit in severe recessions: lessons from the 2008–2013 Portuguese economic crisis," Small Business Economics, Springer, vol. 46(4), pages 591-617, April.
    19. Carlos Carreira & Paulino Teixeira, 2008. "Internal and external restructuring over the cycle: a firm-based analysis of gross flows and productivity growth in Portugal," Journal of Productivity Analysis, Springer, vol. 29(3), pages 211-220, June.
    20. Shigeru Fujita & Garey Ramey, 2005. "The Dynamic Beveridge Curve," Macroeconomics 0509026, University Library of Munich, Germany.
    21. Corrêa, Márcio Veras & Centeno, Mário, 2009. "Technological Progress and Average Job Matching Quality," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 63(4), December.

    More about this item

    Keywords

    ECONOMETRIC MODELS; EMPLOYMENT; LABOUR FORCE; LABOUR MARKET; PRODUCTION;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwo:uwowop:9703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://economics.uwo.ca/research/research_papers/department_working_papers.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.