R&D Activity, Exports, and Changes in Skill Demand in Finland

During the 1990’s the Finnish economy experienced a rapid increase in exports and R&D activity. This paper investigates the impact of these phenomena on the skill structure of labour demand using panel data on Finnish establishments for 1988–2001. Worker’s skill level is defined by both education and age. The results indicate that despite the general shift in employment towards the highly educated and older workers, the selected technology and trade indicators – R&D intensity and export share – did not have a significant effect on the changes in the skill demand within manufacturing sector plants in Finland during the period.