Skill-biased technological change: The case of the MENA region

Abstract

Our work treats the relationship between inequality and technological change. Specifically, we focus on the transmission mechanisms by which technological innovation affects inequality in access to employment. The objective of this article is to determine the effect of the diffusion of innovation on the demand for skilled and non-skilled labour. It focuses on the concept of technological bias and the role of inequality between skilled and unskilled workers. The empirical validation of this work is based on the technique of the dynamic panel. An estimate using the method of Arellano and Bond seems more relevant. There is a positive relationship between innovation and the demand for skilled labour but a negative relationship with unskilled labour. This result is confirmed in our sample of countries.