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Recent years have brought growing evidence for an increasing labour demand for high skilled and a deterioration of the labour position of less skilled employees. The two most common explanations for this finding are an increasing international trade and a skill biased technological change....
This paper analyses the link between technological product and processes innovations and expectations about future employment for different types of labour in manufacturing. The empirical model allows for endogeneity of the firm's innovation decision in the labour demand equations. The system of...