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Understanding demand for skylls after technological trade liberalization

Author

Listed:
  • Bruno Funchal

    (FUCAPE Business School)

  • Jandir Soares Junior

    (Katholiek Universiteit Leuven)

Abstract
This paper investigates the effects of the reduction of barriers to trade in the computer technology sector on the Brazilian labor market. We show that the adoption of computers affected labor demand in favor of non-routine tasks, which are complementary to labor, as opposed to routine ones, which are substitutes. Using the end of the non-tariff barriers in Brazil ("Informatics Law") as an instrument, and relying on detailed information on sectors and occupations, we found evidence that industries and occupations intensive in computer use displayed greater shifts toward non-routine and away from routine tasks for most educational group and genders.

Suggested Citation

  • Bruno Funchal & Jandir Soares Junior, 2013. "Understanding demand for skylls after technological trade liberalization," Fucape Working Papers 40, Fucape Business School.
    • Handle: RePEc:bbz:fcpwps:40
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    References listed on IDEAS

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    Keywords

    Labor demand; skills; trade and labor market interactions; technological change.;
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