Does the Sector Bias of Skill-Biased Technical Change Explain Changing Wage Inequality?

This paper examines whether the sector bias of skill-biased technical change (sbtc) explains changing skill premia within countries in recent decades. First, using a two-factor, two-sector, two-country model we demonstrate that in many cases it is the sector bias of sbtc that determines sbtc's effect on relative factor prices, not its factor bias. Thus, rising (falling) skill premia are caused by more extensive sbtc in skill-intensive (unskill-intensive) sectors. Second, we test the sector-bias hypothesis using industry data for many countries in recent decades. An initial consistency check strongly supports the hypothesis. Among ten countries we find a strong correlation between changes in skill premia and the sector bias of sbtc during the 1970s and 1980s. The hypothesis is also strongly supported by more structural estimation on U.S. and U.K. data of the economy-wide wage changes mandated' to maintain zero profits in all sectors in response to the sector bias of sbtc. The suggestive mandated-wage estimates match the direction of actual wage changes in both countries during both the 1970s and the 1980s. Thus, the empirical evidence strongly suggests that the sector bias of sbtc can help explain changing skill premia.

Global Engagement and the Innovation Activities of Firms

Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. To better understand this correlation, we incorporate the perspective of industrial organization that one of the main drivers of differences in productivity is differences in knowledge. We examine a new data set of several thousand U.K. enterprises covering all industries from 1994 through 2000. For each enterprise we have multiple detailed measures of knowledge outputs, knowledge investments, and sources of existing knowledge. We find that globally engaged firms do innovate more. But this is not just because globally engaged firms use more researchers. It is also because they learn more from more sources such as suppliers and customers, universities, and their intra-firm worldwide pool of information. We also find that the relative importance of knowledge sources varies systematically with the type of innovation.

Small quantity production of complex chromium alloy sheet /Cr-7Mo-2Ta-0.09C-0.1Y/ Final report

Fabrication of Cr-Mo-Ta-C-Y alloy shee

Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?

Are there productivity spillovers from FDI to domestic firms, and, if so, how much should host countries be willing to pay to attract FDI? To examine these questions we use a plant-level panel covering U.K. manufacturing from 1973 through 1992. Across a wide range of specifications, we estimate a significantly positive correlation between a domestic plant's TFP and the foreign-affiliate share of activity in that plant's industry. This is consistent with positive FDI spillovers. We do not generally find significant effects on plant TFP of the foreign-affiliate share of activity in that plant's region. Typical estimates suggest that a 10 percentage-point increase in foreign presence in a U.K. industry raises the TFP of that industry's domestic plants by about 0.5 percent. We also use these estimates to calculate the per-job value of these spillovers. These calculated values appear to be less than per-job incentives governments have granted in recent high-profile cases, in some cases several times less.

Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?

Are there productivity spillovers from FDI to domestic firms, and, if so, how much should host countries be willing to pay to attract FDI? To examine these questions we use a plant-level panel covering U.K. manufacturing from 1973 through 1992. Across a wide range of specifications, we estimate a significantly positive correlation between a domestic plant's TFP and the foreign-affiliate share of activity in that plant's industry. This is consistent with positive FDI spillovers. We do not generally find significant effects on plant TFP of the foreign-affiliate share of activity in that plant's region. Typical estimates suggest that a 10 percentage-point increase in foreign presence in a U.K. industry raises the TFP of that industry's domestic plants by about 0.5 percent. We also use these estimates to calculate the per-job value of these spillovers. These calculated values appear to be less than per-job incentives governments have granted in recent high-profile cases, in some cases several times less.Multinational firms, Foreign direct investment, Productivity spillovers

POWERLIB: SAS/IML Software for Computing Power in Multivariate Linear Models

The POWERLIB SAS/IML software provides convenient power calculations for a wide range of multivariate linear models with Gaussian errors. The software includes the Box, Geisser-Greenhouse, Huynh-Feldt, and uncorrected tests in the "univariate" approach to repeated measures (UNIREP), the Hotelling Lawley Trace, Pillai-Bartlett Trace, and Wilks Lambda tests in "multivariate" approach (MULTIREP), as well as a limited but useful range of mixed models. The familiar univariate linear model with Gaussian errors is an important special case. For estimated covariance, the software provides confidence limits for the resulting estimated power. All power and confidence limits values can be output to a SAS dataset, which can be used to easily produce plots and tables for manuscripts.

Amorphous Systems in Athermal, Quasistatic Shear

We present results on a series of 2D atomistic computer simulations of amorphous systems subjected to simple shear in the athermal, quasistatic limit. The athermal quasistatic trajectories are shown to separate into smooth, reversible elastic branches which are intermittently broken by discrete catastrophic plastic events. The onset of a typical plastic event is studied with precision, and it is shown that the mode of the system which is responsible for the loss of stability has structure in real space which is consistent with a quadrupolar source acting on an elastic matrix. The plastic events themselves are shown to be composed of localized shear transformations which organize into lines of slip which span the length of the simulation cell, and a mechanism for the organization is discussed. Although within a single event there are strong spatial correlations in the deformation, we find little correlation from one event to the next, and these transient lines of slip are not to be confounded with the persistent regions of localized shear -- so-called "shear bands" -- found in related studies. The slip lines gives rise to particular scalings with system length of various measures of event size. Strikingly, data obtained using three differing interaction potentials can be brought into quantitative agreement after a simple rescaling, emphasizing the insensitivity of the emergent plastic behavior in these disordered systems to the precise details of the underlying interactions. The results should be relevant to understanding plastic deformation in systems such as metallic glasses well below their glass temperature, soft glassy systems (such as dense emulsions), or compressed granular materials.Comment: 21 pages, 18 figure