• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.289-306
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• 2021

This paper aims to investigate how and to what extent FDI impacts the relative demand for skilled labor within firms in the case of developing countries. The analysis uses a sizeable micro-level dataset for Malaysian manufacturing industries using the System-GMM estimators to control the estimations' endogeneity problems. For this purpose, the study uses foreign equity share at the firm level to investigate foreign ownership effects at the firm level and the Horizontal FDI index by Smarzynska Javorcik (2004) to analyze FDI intra-industry linkages influence on the structure of labor demand for Malaysian domestic firms. Our findings indicate that foreign ownership increases the skilled demand within Malaysian manufacturing through the learning process, exclusively for small- and medium-sized firms (SMEs). Conversely for foreign-owned firms, changes in their skilled-labor share do not associate with changes in firm-level foreign equity share. We conclude that foreign ownership per se is not the major contributing factor for skill upgrading in Malaysian manufacturing firms. Furthermore, the competitive pressures caused by foreign firms' presence within the same industry - namely horizontal FDI - has a significant negative spillover effect on the level of skilled-labor share for domestic firms in the Malaysian manufacturing sector within periods of the understudies.

• KDI Journal of Economic Policy
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• v.34 no.1
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• pp.87-133
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• 2012

This paper consists of two parts. The first part introduces a simple endogenous growth model. It is based on Romer(1990), but extends the original model by incorporating individual workers skill heterogeneity. Based on the heterogeneity, the model has a labor allocation mechanism between skilled (research) and unskilled (production) sectors. Different from Romer(1990), the labor allocation is determined by both demand and supply conditions of the economy. The endogenous growth model presented in this paper shows how the shape of the distribution of human capital affects on the labor allocation, hence on the employment structure, wage profile and economic growth. The model can be extended to an open economy. With the heterogeneity, the extended model explains distributional effect as well as growth effect of the economic openness. The second part provides empirical evidence in support of the extension part of the model presented in the first part. Based on the endogenous growth framework as proposed by Romer(1990) and Rivera-Batiz and Romer(1991), the model explains how economic openness affects labor allocation between skilled and unskilled sectors. According to the model, economic openness can affect labor allocation through two channels; knowledge spillover and specialization. First, the openness promotes knowledge spillover and hence increases the productivity of workers in the skilled sectors. This makes the economy employs more workers in the skilled sector. On the other hand, the openness causes global specialization which leads more employment in the skilled sector for the developed countries but at the same time, leads less employment in the skilled sector for the developing countries since the developing countries have comparative advantages in the unskilled sector. The empirical results obtained using cross country panel data in this paper support these two effects of knowledge spillover and specialization.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.283-293
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• 2021

To verify the employment impact of two-directional FDI, the study analyzes panel data composed of 26 OECD countries from 2006 to 2018 by using the system GMM. Furthermore, we decompose domestic employment into types of industries and skill compositions to identify the heterogeneous employment impact. The results show that inward and outward FDI at lag one period promote domestic employment at the overall level. In terms of workers' skill levels, lagged inward FDI significantly persistently promotes high-skilled workers' employment, likewise, the positive employment impact also appears with a time lag in low-skilled labor subgroups. Outward FDI, on the other hand, initially inhibits both high- and low-skilled labor demand, but then changes to a positive effect in the highskilled labor subgroups. Although there is a time difference between inward and outward FDI, it has a significant and positive impact on employment in the manufacturing and service industries. The results indicate that the relationship between manufacturing and service employment is a mutual substitute. To attract international investors, governments should promote a favorable investment climate and maintain stable economic growth. Because low-skilled labor is more susceptible to changes in FDI, policy measures are required to ensure employment stability.

• Journal of Labour Economics
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• v.29 no.2
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• pp.1-27
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• 2006

Recent migration is led by skilled labor, This paper performes a cross-country analysis to find the determinants of skilled migration using recently released Doquier and Marfouk(2005) data as dependent variable and economic indicators of nations as independent variables. Regression results show that the skilled migration to OECD countries are driven not only by income motive but also by structural factors, such as industrial structure and life expectancy, which have broader meanings in development. It is noteworthy that structural factors of a nation become more important as its income level rises. English seems to have positive effect on skilled migration. Some region-specific factors, proximity to USA of Caribbean countries and political instability of Gold Coast countreis, for example, are found. Middle-income countries seem to be the most vulnerable to the possible risk of brain drain.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2018.05a
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• pp.70-71
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• 2018

The labor cost on construction project of Korea is calculated based on the Wage Rate in Construction of Korea which is published by Construction Association of Korea. The Wage Rate in Construction of Korea does not have any variation on the wage following skill level of labor although it has 123 work categories. In addition, the classification on skill level and career of construction labor in Korea does not defined. Therefore, to establish the concept of the classification on skill level and career of construction labor, this study aim to compare the difference between Wage Rate in Construction of Korea with Award system which present grade on skilled labor.

• Korean Journal of Construction Engineering and Management
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• v.15 no.1
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• pp.11-19
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• 2014

The Construction industry is a labor-intensive industry that its labor cost takes up about 30~40% out of the whole construction cost. However, due to a stereotype that on-site work is a 3D job there is a shortage of the labor forces. Modular construction method is to produce modular units in the plant so that workers could work stably. Also, after delivering the module from plant to the site, there will be only installment to be required that shortens construction duration. Even though the modular market is currently expanding based on military facilities in Korea, its best strengths are not demonstrated well which are shortened construction period and low cost. It also causes labor problem of production due to minimum utilization of the modular construction method. Multi-skilled labor means a technician that is able to perform more than two kinds of work with more than two techniques. Multi-skilled labor can proceed smoothly by figuring out the connectivity between the precedent and following operations. Therefore, this research is to apply the concept of Multi-skilled labors, suggest solutions and allocate manpowers efficiently. As a result, it helps to decrease idle manpowers during the operation and the total labor forces can be saved. Low cost is the original strength of the modular which can stand out so the modular market is expected to expand.

• Korea Trade Review
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• v.44 no.1
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• pp.1-15
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• 2019

This study aims to analyze the effects of trade on human capital accumulation and economic growth in Korean manufacturing industry. The results of empirical analysis by dynamic panel model are as follows. The increase in exports of skilled labor intensive industries has a positive effect on human capital and economic growth, and the impact of import on human capital accumulation and economic growth has alst a positive impact. The exports of unskilled intensive labor industries have a negative impact on human capital accumulation and economic growth. Imports of unskilled labor intensive industries have negative on human capital accumulation and economic growth. It is difficult to derive statistically significant results for the effects of trade on human capital accumulation and economic growth before and after 2008. However, as a result of the financial crisis in 2008, it seems that the effects have decreased since 2008.

• KDI Journal of Economic Policy
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• v.29 no.1
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• pp.1-39
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• 2007

This study focuses on the possibility that skill-biased technological change is one of the factors for relatively poor employment conditions of the unskilled after the economic crisis. Increasing employment share of skilled workers accompanying with rising wage premium for education since implies that labor demand has shifted toward the skilled. The decomposition of changes in wage share of skilled workers into between-industry and within-industry changes suggests that the increase in the demand for skilled labor has been largely due to within-industry changes, which can be seen as reflecting the effect of the skill-biased technological change. Also the regression results indicate that the employment share of skilled workers has more rapidly increased in the industries with higher ICT (Information Communication Technology) investment intensity since the mid 1990s, hinting to the possibility that skill-biased technological changes may have come from ICT.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.173-183
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• 2020

The paper investigates the determinants of foreign direct investment (FDI) in Vietnam in 2000-2019 period. This study uses difference Generalized Methods of Moments (GMM) and Pooled Mean Group (PMG) to analyse panel data officially provided by General Statistical Office of Vietnam. The results show that market size impacts positively significant on FDI attraction: 1% -1.45% (PMG) and 1% -1.25% (GMM). Besides, some other factors have positive influences as labor force, macroeconomic policy, macroeconomic stability and skilled labor. Meantime, the trade openness negatively affects FDI inflows in the short-term, while not being statistically significant in the long-term. Moreover, economic shocks often have a negative impact on FDI inflows. The findings of this study lead to the following recommendations. First, authorities should pay special attention to encourage economic growth rate in Vietnam to expand market size because this is the first priority of foreign investors. Second, authorities need to continue increasing the rate of skilled labor, especially highly qualified management force, engineers and well-skilled workers. Third, the authorities should adjust trade openness to boost the role of its determinant in attracting FDI inflows. Fourth, macroeconomic stability needs to be governed by international standards in order to secure the belief of foreign investors in the long-term.

• Journal of Labour Economics
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• v.36 no.1
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• pp.93-129
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• 2013

Analyzing the change in consumption pattern depending on the employment of married women, the spendings in transportation, education, and dining out are increased. The change in consumption patterns depending on the increase of dual-income family can be seen as the increased demand of market service that replaces the household production service. Especially when the employment of married woman from high income class(highly educated, middle-class, upper-class) is increased, they tend to get employed in more professional and highly skilled industries, which leads to higher effect on employment induction, and consequently increasing the labor demand for low-skilled service industry.