High routine intensity does not imply low skill intensity

2018 ◽  
Keyword(s):  
Skill Intensity

Value Chains and Industrial Development in South Africa

2021 ◽  
pp. 374-395
Author(s):  
Mike Morris ◽  
Justin Barnes ◽  
David Kaplan
Keyword(s):  
South Africa ◽  
Automotive Industry ◽  
Value Chain ◽  
Industrial Development ◽  
Value Chains ◽  
Technological Advancement ◽  
African Region ◽  
Skill Intensity ◽  
Import And Export ◽  
Managerial Capabilities

This chapter focuses on the dynamics of global value chains (GVC) engagement and industrial development in South Africa through two case studies—the automotive and textiles/apparel sectors. The further industrialization and development of South Africa and of the Southern African region will depend heavily on further developing their engagement in GVCs and simultaneously upgrading their capacities into higher valued and more skill and intensive activities. The automotive industry is import and export intensive, offering the potential for technological advancement, increasing skill intensity and upgrading, and positive economic spillovers. Apparel is domestic market oriented, sourcing domestically, regionally in Southern Africa, and from Asia. It is an example of a low technology, labour intensive industry, exhibiting lower levels of managerial capabilities and skills. It is challenged by raising capabilities to meet new value chain requirements and extending the supplier base to increase value addition (and by implication employment) in the economy.

Changes in Skill Intensity in Indian Manufacturing Industry: Some Important Determinants

2015 ◽  
Vol 2 (2) ◽  
pp. 1-18
Author(s):  
Bharat Singh
Keyword(s):  
Manufacturing Industry ◽  
Correlation Coefficients ◽  
Manufacturing Industries ◽  
Policy Framework ◽  
Skilled Workers ◽  
New Economic Policy ◽  
Explanatory Variables ◽  
Skill Intensity ◽  
Multiple Correlation Coefficients ◽  
The One

The formulation and adoption of a new economic policy during the year 1991 which mainly focused on privatisation of Public Sector Undertakings (PSUs), liberalisation of regulations relating to trade, industries and globalisation of the Indian economy can be said to have facilitated the increased control of owners of capital over the production processes through their representatives, the managers, professionals and technocrats. This process has necessitated the change in demand for non-production and production workers in a firm or industry. Using the ASI data at 2-digit level an attempt has been made in this paper to identify some important factors which might have acted as important determinants of changes in the demand for non-production workers or skilled workers in Indian manufacturing industries. For this purpose the multiple correlation coefficients was computed between NP/P (dependent variable) on the one hand and various explanatory variables on the other. It was observed that the variables identified as important determinants of changes in the relative demand for the non-production workers (skilled workers) in Indian manufacturing industries exert their influence in different directions and in varying degrees on a particular industry and across industries also. Hence the policies formulated and implemented to augment the level of productivity and employment should be industry specific under the broad industrial policy framework

Growth and Inequality in Closed and Open Economies: The Role of the Product Cycle

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Priya Ranjan
Keyword(s):  
Trade Liberalization ◽  
Wage Inequality ◽  
Productivity Growth ◽  
Technological Progress ◽  
Research Effort ◽  
Product Cycle ◽  
Skill Intensity ◽  
Increase Productivity ◽  
New Goods

Abstract The product cycle literature suggests that new goods have a higher skill intensity in the early phase of production, which declines once the production process becomes standardized. Using this insight it is shown how an increase in the rate of neutral technological progress, which frees up resources tied in the production of existing goods, leads to increased production of skill intensive new goods and consequently an increase in wage inequality. When technological progress is exogenous, a decrease in skill endowment or trade liberalization with a skill scarce country increases wage inequality but leaves the composition of production between new and standardized goods unaltered. When the rate of technological progress depends on research effort, trade between a skill-abundant Northern economy and a skill-scarce Southern economy can raise wage inequality in both countries and increase productivity growth in the latter. North-North trade increases both wage inequality and productivity growth.

Labour Market Adjustment and Intra-Industry Trade: Empirical Results from Indian Manufacturing Sectors

2020 ◽  
Vol 15 (2) ◽  
pp. 238-269
Author(s):  
Sakshi Aggarwal ◽  
Debashis Chakraborty
Keyword(s):  
Labour Market ◽  
Negative Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Industry Trade ◽  
Skill Intensity ◽  
Manufacturing Sectors ◽  
The Relationship

During the last two decades, India has witnessed several trade and industrial policy reforms. The objective of the study is to examine the relationship between dynamism of India’s two-way trade, measured through Marginal Intra-Industry Trade (MIIT) index, and labour market adjustments, reflected through absolute employment changes, in select manufacturing sectors over 2001–2015. India’s MIIT in select sectors generally display an upward trend over the sample period, while a mixed dynamics is observed on the employment front. The generalized method of moments (GMM) estimation results indicate that MIIT, increase in productivity, skilled workforce intensity, industrial concentration, incremental FDI inflows and trade openness positively influence absolute employment changes, whereas unskilled wage exerts a negative impact on the same. The analysis further concludes that high relative growth rate, skill-intensity, incremental FDI inflows and higher productivity in a sector, also characterized by higher MIIT, may lead the firms to employ more productive and competitive resources, resulting in higher absolute changes in employment. The obtained results do not support the Smooth Adjustment Hypothesis (SAH) predictions in the Indian context.

scholarly journals Is There a Link between the Changing Skills of Labor Used in U.S. Processed Food Trade and Rural Employment?

2004 ◽  
Vol 36 (3) ◽  
pp. 691-703 ◽  
Author(s):  
Gerald Schluter ◽  
Chinkook Lee
Keyword(s):  
Migrant Workers ◽  
Rural Areas ◽  
Skilled Labor ◽  
Processed Food ◽  
Meat Processing ◽  
Food Trade ◽  
Rural Workers ◽  
Rural Employment ◽  
Poultry Products ◽  
Skill Intensity

Between the 1970s and the 1990s, processed food exports switched from using more skilled labor per unit of output than imports to the opposite. Processed food trade also expanded during this period. More meat and poultry products in processed food trade could explain this switch in skill intensity. Growing meat trade paralleled an urban-to-rural shift in meat processing. Although this could have been a win-win situation for rural areas, many of the jobs related to expanded meat trade benefited commuter and migrant workers because late-1990s jobs slaughtering livestock and processing meat did not appeal to domestic rural workers.

Economic and Social Upgrading in Global Value Chains: Insights from Philippine Manufacturing Firms

2018 ◽  
Vol 2018 ◽  
Author(s):  
Adrian R. Mendoza
Keyword(s):  
Statistical Significance ◽  
Global Value Chains ◽  
Labor Cost ◽  
Value Chains ◽  
Probit Regression ◽  
Skilled Workers ◽  
Labor Conditions ◽  
Skill Intensity ◽  
Economic Upgrading ◽  
Social Upgrading

This study explores results of the 2012 Survey on Adjustments of Establishments to Globalization (SAEG) to analyze the economic and social upgrading experience of Philippine manufacturers within global value chains (GVCs). Three broad patterns emerge from the data. First, firms with stronger GVC linkages tend to have better labor indicators than purely domestic producers. Second, the majority of manufacturers either experienced or missed economic and social upgrading simultaneously. Lastly, almost all social upgrading is accompanied by economic upgrading but economic upgrading may take place without a social component. Against this background, this study uses bivariate probit regression to model the joint determination of the two separate but interconnected upgrading outcomes. The results indicate that the covariates in the model can be categorized based on their statistical significance: purely economic (i.e., employment size, unit labor cost, high skill intensity, and the Kaitz dummy), purely social (i.e., training, female intensity, and foreign equity), and both (i.e., contractualization, and process and product innovations). These results have several important implications. First, GVC firms’ notion of social upgrading is closer to the softer components of working conditions than to traditional measurable indicators such as employment, wages, and efficiency. Second, the results suggest direct and indirect channels through which technological upgrading may generate desirable social outcomes: the direct channel highlights that innovation should be accompanied by skills development to sustain higher value creation while the indirect channel underlines the potential of innovation to create upward spirals in output, productivity, and, ultimately, labor conditions. Lastly, there are some indications that the social benefits of economic upgrading may not be evenly distributed among different types of employment. Overall, the results emphasize the need for a holistic upgrading experience that shifts the country’s comparative advantage from cheap labor to innovative local industries and highly skilled workers.

Changes in India’s Import Basket: An Exploratory Analysis of the U.S. Export Data

2014 ◽  
Vol 10 (4) ◽  
pp. 247-264
Author(s):  
Soumendra Nath Banerjee ◽  
Boishampayan Chatterjee
Keyword(s):  
New Products ◽  
Exploratory Analysis ◽  
Product Diversification ◽  
Product Categories ◽  
Export Sector ◽  
Skill Intensity ◽  
The U.S

This paper attempts to understand India’s import growth from the U.S. between 1991 and 2006. In particular, we analyse how the allocation of industries in the export sector, skill intensity of products, product diversification, and contributions of new products have changed as India’s imports from the U.S. have grown. Our findings suggest that India’s import from the U.S. in 2006 has increased in the more sophisticated product categories. Furthermore, our study finds that India has diversified in the range of products it is importing from the U.S., with new products gaining an increased share in India’s import basket.

scholarly journals An International Look at the Growth of Modern Finance

2013 ◽  
Vol 27 (2) ◽  
pp. 73-96 ◽  
Author(s):  
Thomas Philippon ◽  
Ariell Reshef
Keyword(s):  
Unit Cost ◽  
The United States ◽  
Income Share ◽  
Financial Deregulation ◽  
Skill Intensity ◽  
Real Gdp ◽  
Long Run ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Relationship

We study the rise of finance across a set of now-industrial economies. The long-run pattern of the growth of the income share of finance from the nineteenth century to current times in the United States is similar to some economies, but not all economies reach the same size and instead reach a plateau. The relationship between financial output and income is nonhomothetic and changes three times in this sample. Most of the increase in real GDP per capita from 1870 occurred while financial output and the income share of finance were smaller than their size in 1980. After 1980 the elasticity of income with respect to financial output falls significantly. We find considerable heterogeneity in the size of finance in recent times. There is no evidence for an increase in the unit cost of financial intermediation. We find that information technology and financial deregulation can help explain the increase in relative skill intensity and in relative wages in finance, while common trends, which may be related to financial globalization, also play a role.

Sign in / Sign up

Export Citation Format

Share Document