EMNES Working Paper 009
The objective of the paper is to test the impact of exports and innovation on the demand of skilled labor in the MENA region using firm-level data. In this matter, our contribution is threefold. First, we examine the connection between exports and skill bias through several innovation and technology adoption indicators. Second, we differentiate between the effect of innovation on skilled blue-collar (production workers) vs. white collars workers (non-production workers). Third, we test this relationship for nine MENA countries, using firm-level data from the World Bank Enterprise Survey (2013). Our results suggest a positive and significant impact of exports on innovation and technology adoption. Furthermore, demand for skilled production workers by firms in the MENA region is likely to be higher than that for non-production workers. This demand is particularly high when a firm adopts a new logistics method, a new production method, a new product and a new organizational structure. Third, the larger the firm, the higher the demand for skilled production and non-production labor.
