This paper investigates the effects of trade, technological change and final demand growth on the skill structure of UK employment. A new method is developed, using a multi-sector framework, which combines a decomposition of the growth of gross output by sector with factor content of trade...

The incidence of vocational training is influenced by characteristics of workers and firms. The authors investigate the determinants of both employer-arranged training and individually organized training. The data relate to training spells experienced by 2,000 British workers in 1984-87, when...

This paper explores the role of innovation in the determination of both net exports and export prices. The analysis is conducted for thirty-six industry groups covering both manufacturers and services in the United Kingdom. The data are annual time series and these are analyzed using the...

A new method is developed for allocating the changing use of skills among final demand growth, trade and technological change. In a multi-sector framework the skills content of intermediate and capital goods purchased is captured through input-output data. Technological change is measured...

A surprisingly small number of innovative firms use the patent system. In the UK, the share of firms patenting among those reporting that they have innovated is about 4%. Survey data from the same firms support the idea that they do not consider patents or other forms of registered IP as...

In this paper, the authors study how firms react to demand shocks, examining how different aspects of flexibility shape their responses. Their main findings are that very few firms choose to adjust to price in response to a demand shock and that firms with more flexibility are more likely to...

Why have skill shortages continue to persist despite increases in training and the skill levels of the workforce? We argue that technical progress has raised the demand for skilled labour to match the observed increase in supply. We provide econometric evidence in support of this hypothesis,...

It is widely felt that skill shortages are a serious problem in the United Kingdom. This paper investigates the causes of skill shortages. The authors' empirical work is based on job matching theory so that shortages correspond to long duration vacancies. They argue that shortages depend on...