Title: The Loss of Production Work: Evidence from Quasi-Experimental Identification of Labour Demand Functions
Abstract: This paper examines changes in the structure of labour demand in plant-level panel data. I exploit
variation in wages across local labour markets induced by the collapse of Finland’s Soviet-dependent
industry in the early 1990s to identify a labour demand model for plants producing for non-Soviet
markets, which were not directly affected by the Soviet shock. I find a labour demand shift against
workers in production occupations which accelerates in the 2000s, when industry patterns begin to
diverge. Industry heterogeneity suggests that variation in industry structure may partly explain the
differential development of wages and employment across countries
Publication Year: 2016
Publication Date: 2016-10-10
Language: en
Type: article
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