Abstract:Abstract. In this article, two-equation dynamic model is constructed to analyze both relative and absolute effects of innovation on the demand of skilled and unskilled labor, namely if skill-biased technical change happens in China. GMM-SYS techniques are applied to panel data comprising 30 regions over 7 years from 2006 to 2012. Results provide evidence that R&D funds will leads to increasing demand of skilled workers and decreasing demand of unskilled workers. R&D expenditure grows by 1%, demand of the skill… Show more
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