Technology, trade and skills in Brazil: Evidence from micro data

Brazil was characterised by a marked process of trade liberalisation in the ¿90s, resulting in a dramatic increase in the volumes of exports and imports since the year 2000. Over the same period, the relative demand for skilled labour has increased substantially. To investigate whether these two simultaneous phenomena are linked is the purpose of this paper. More in particular, this study focuses on the possible impact of domestic technology, capital complementarity and trade openness on the relative demand for skilled labour in Brazilian manufacturing firms, using a unique panel database of Brazilian manufacturing firms over the period 1997-2005. The empirical evidence supports the hypothesis that technology played a role in determining the skill-upgrading of Brazilian manufacturing firms. Indeed, the estimations show that domestic technology and capital formation are complements for the skilled workers and that imported capital goods clearly act as a skill-enhancing component of trade.

ARAÚJO Bruno Cesar;  BOGLIACINO Francesco;  VIVARELLI Marco; 

2014-04-23

COMISION ECONOMICA PARA AMERICA LATINA Y EL CARIBE

JRC62309

0251-2920,