Job creation, heterogeneous workers and technical change : matched worker/plant data : evidence from Norway

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Discussion Papers No. 304, August 2001 Statistics Norway, Research Department

Kjell G. Salvanes and Svein Erik Førre

Job Creation, Heterogeneous Workers and Technical

Change:

Matched Worker/Plant Data Evidence from Norway

Abstract:

Using matched worker/plant level data for Norway, theories explaining the change in skill composition are assessed using direct evidence on the job creation and destruction for high, medium and low skilled workers. Skill based job creation is analysed in detail for plants in a high-skill service sector and in low- and high-tech manufacturing sectors. Given a

compressed wage structure in Norway and increased supply of high skilled workers, the supply of skills may also explain the changed skill composition. In order to disentangle the supply and demand effects, we fix the skill level by analysing the job creation process for skills within cohorts of workers.

Keywords: Job creation, heterogeneous workers, heterogeneous plants, technical change.

JEL classification: J23, J63, O33.

Acknowledgement: We thank Paola Bota, Tor Jakob Klette, Kjell Erik Lommerud, participants at IFS workshop «Unemployment, Job Creation and Technical Change»

November 8 1996, and seminar participants at the University of Bergen, University of Oslo and The Norwegian School of Economics and Business Administration, for useful comments and suggestions to an earlier draft of the paper.

Address: Kjell G. Salvanes, Department of Economics Norwegian School of Economics and Business Administration. Helleveien 30, N-3036 Bergen-Sandviken Norway.

Email:kjell.salvanes@nhh.no

Svein Erik Førre, Statistics Norway, Research Department, P.O. Box 8131 Dep., N-0033 Oslo Norway. E-mail: sef @ssb.no

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