Skill-based technology transfer around the world

In this paper we consider the extent to which skill-biased technological changes are transferring across international borders, thereby altering the skill structure of labour markets. Evidence of increased relative demand for skilled workers is uncovered in the manufacturing sectors of 37 high-, middle-, and low-income countries. Skill-biased technology transfer is central to the increased demand for skilled workers in middle income countries. In low-income countries there is less evidence of such a mechanism operating.