TRADE LIBERALIZATION, TECHNOLOGY IMPORT AND EMPLOYMENT: EVIDENCE OF SKILL UPGRADING IN THE TUNISIAN CONTEXT

There are increasing studies that address the skill upgrading in developing countries. If the theoretical analyses yield different results about the factors of skill upgrading, the issue is mainly empirical questions. This paper contributes and adds to the growing literature on labor market by investigating the impact of trade openness and technology change on employment for skilled and unskilled labor in Tunisia. In this study, we make use of a manufacturing industries annual database of 6 manufacturing industries over the period 1983-2007, provided by the Tunisian National Institute of Statistics, the Quantitative Economic Institute and the Comtrade base of United Nations. Our main empirical result indicates that trade and technology change positively affect absolute and relative skilled labor employment. This result is consistent with studies which support the idea that in developing countries trade liberalization induces skill-biased technology changes.