Skill-Biased Management: Evidence from Manufacturing Firms | Zendy

Andy Feng | Zendy; Anna Valero | Zendy

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Skill-Biased Management: Evidence from Manufacturing Firms

Author(s) -

Andy Feng,

Anna Valero

Publication year - 2020

Publication title -

the economic journal

Language(s) - English

Resource type - Journals

eISSN - 1468-0297

pISSN - 0013-0133

DOI - 10.1093/ej/ueaa005

Subject(s) - workforce , human capital , business , variation (astronomy) , set (abstract data type) , labour economics , skills management , industrial organization , economics , marketing , market economy , economic growth , physics , astrophysics , computer science , programming language

This paper investigates the link between management practices and workforce skills in manufacturing firms, exploiting geographical variation in the supply of human capital. Skills measures are constructed using newly compiled data on universities and regional labour markets across 19 countries. Consistent with management practices being complementary with skills, we show that firms further away from universities employ fewer skilled workers and are worse managed, even after controlling for a rich set of observables and fixed effects. Analysis using regional skill premia suggests that variation in the price of skill drives these relationships.

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