Template-type: ReDif-Paper 1.0 Author-Name: Meschi, Elena Author-Email: elena.meschi@unive.it Author-workplace-name: Ca Foscari University of Venice Author-Name: Taymaz, Erol Author-Email: etaymaz@metu.edu.tr Author-workplace-name: Middle East Technical University, Ankara Author-Name: Vivarelli, Marco Author-Email: vivarelli@merit.unu.edu Author-workplace-name: UNU‐MERIT, Maastricht University, IZA, Bonn and Università Cattolica del Sacro Cuore, Milano Title: Globalisation, technology and the labour market: A microeconometric analysis for Turkey Abstract: This paper studies the interlinked relationship between globalisation and technological upgrading in affecting employment and wages of skilled and unskilled workers in a middle income developing country. It exploits a unique longitudinal firm-level database that covers all manufacturing firms in Turkey over the 1992-2001 period. Turkey is taken as an example of a developing economy that, in that period, had been technologically advancing and becoming increasingly integrated with the world market. The empirical analysis is performed at firm level within a dynamic framework using a model that depicts the employment and wage trends for skilled and unskilled workers separately. In particular, the System Generalized Method of Moments (GMM-SYS) procedure is applied to a panel dataset of about 15,000 firms. Our results confirm the theoretical expectation that developing countries face the phenomena of skill-biased technological change and skill-enhancing trade, both leading to increasing the employment and wage gap between skilled and unskilled workers. In particular, a strong evidence of a relative skill bias emerges: both domestic and imported technologies increase the relative demand for skilled workers more than the demand for the unskilled. "Learning by exporting" also appears to have a relative skill- biased impact, while FDI imply an absolute skill bias. Keywords: Skill-biased technological change, international technology transfer, GMM-SYS Classification-JEL: O33 Series: UNU-MERIT Working Papers Creation-Date: 20160517 Number: 2016-026 File-URL: https://unu-merit.nl/publications/wppdf/2016/wp2016-026.pdf File-Format: application/pdf File-Size: 275 kb Handle: RePEc:unm:unumer:2016026