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Trade, technology and skills: Evidence from Turkish microdata

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2011-12-01
MESCHİ, Elena
Taymaz, Erol
VİVARELLİ, Marco
In this paper we report evidence on the relationship between trade openness, technology adoption and the relative demand for skilled labour in the Turkish manufacturing sector, using firm-level data over the period 1980-2001. In a dynamic panel data setting, using a unique database comprising data from 17,462 firms, we estimate an augmented cost share equation whereby the wage bill share of skilled workers in a given firm is related to international exposure and technology adoption.