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1. Does Change in Intellectual Property Rights Induce Demand for Skilled Workers? Evidence from India

Author:
Pavel Chakraborthy and Prachi Gupta
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Do incentives to innovate create demand for skilled workers more than proportionately? We study the question using the implementation of the Patent (Amendment) Act in India in 2002 to comply with the Trade-Related Intellectual Property Rights agreement. We find, first, stronger intellectual property protection has a sharper impact on demand for skilled workers for high patentable industries. Demand for skilled workers increased by 0.5%–2.9% for industries that are more patentable. The average compensation for skilled workers went up by 10% in high patentable industries but decreased for unskilled workers by about 2%. Second, the increase in wage inequality can partly be attributed to the increase in wages rather than incentives. Third, the increase in demand for skilled workers is due to both the increase in intensive margin (or price) and extensive margin (number). Fourth, the aggregate effect is completely driven by industries producing intermediate goods and big plants. Finally, the reforms led to a significant reallocation of resources between industries. The high patentable industries invested more in technology adoption, started to produce more product varieties at higher quality, and filed for more product patent claims. Broadly, we demonstrate that stronger intellectual property protection leads to higher wage inequality between industries.
Topic:
Science and Technology, Labor Issues, Intellectual Property/Copyright, and Skilled Labor
Political Geography:
India and Asia

2. The Role of Innovation in Skill Development: Evidence from Small and Medium-Sized Enterprises in Viet Nam

Author:
Duc Anh Dang and Vuong Ahn Dang
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the Small and Medium Enterprise Survey in Vietnam and three proxies of innovation, we study the impact of firm innovation on on-the-job training in the manufacturing sector from 2007 through 2015. To address potential measurement errors and omitted variable problems, we use the average level of innovation in the same sector in other districts as an instrument for firms’ innovations. We find that firms provide additional training for existing workers when introducing new technology, and high-value-added firms provide additional training for existing workers. Moreover, government assistance may not be the main reason that encourages firms to provide training. The results also show that firms hire more skilled workers when implementing innovations.
Topic:
Development, Training, Innovation, and Skilled Labor
Political Geography:
Asia and Vietnam

3. Worker Training Tax Credit: Promoting Employer Investments in the Workforce

Author:
Alastair Fitzpayne and Ethan Pollack
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Rapid advances in technology, including artificial intelligence and automation, are transforming industries and reshaping the skills necessary to secure and keep a job. In response, U.S. workers will need to acquire skills that are not easily automated or that complement ever-changing technology. Yet, data suggest an alarming trend: there is a steady decline in the amount employers are investing in their workforce.[1] Federal and state policymakers should consider using tax incentives to encourage additional workforce training investments. To accomplish this, in May 2017 the Future of Work Initiative proposed the Worker Training Tax Credit. Modeled on the popular Research and Development (R&D) Tax Credit, this new tax credit could be used by small and large businesses to invest in training for their low- and middle-income workers. Based on economic modeling recently conducted by District Economics Group, the Worker Training Tax Credit would cost roughly $146.5 million over ten years, and lead businesses to increase training investments by 8.5 percent. Because the tax credit excludes training provided to high-income workers, these induced training investments would provide greater opportunity to low- and middle-income workers.
Topic:
Science and Technology, Employment, Tax Systems, Artificial Intelligence, and Skilled Labor
Political Geography:
North America and United States of America

4. Principles for Growing and Sustaining the Nation’s Cybersecurity Workforce

Author:
Aspen Cybersecurity Group
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The U.S. currently has a cyber workforce shortage of 300,000 individuals and the trend line predicts an increasing gap. This is largely because demand is significantly outpacing supply, large candidate pools are left untapped, employer requirements aren’t well sync’d to the skills needed, and awareness of cyber career paths remains low. After months studying the challenge, the Aspen Cybersecurity Group offers a mix of principles, partnerships, and specific steps employers can take to close the skills gap.
Topic:
National Security, Cybersecurity, Work Culture, and Skilled Labor
Political Geography:
United States of America and North America

5. Chicago’s Fresh Approach to Incumbent Worker Training

Author:
Amanda Newman and Jenny Weissbourd
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
In recent years, the United States grocery industry has become increasingly competitive and experienced unprecedented consolidation. In Chicago, 25 stores closed between 2015 and 2017 — bringing the total number of stores down to its lowest number since 2009. Independent, privately owned food retailers rate competition as their highest concern, followed by worries about hiring and retention. In 2017, sales declined for half of the nation’s independent grocers. Pete’s Fresh Market (Pete’s) offers a notable exception. Launched in the early 1970s as a small, full-service produce stand on the South Side of Chicago, today Pete’s has 13 stores in the city and plans to open five more in the next few years. This family-owned grocer recognizes what it takes to succeed in a rapidly changing industry. One key to Pete’s growth strategy is its partnership with Instituto del Progreso Latino (Instituto), a nonprofit organization committed to the fullest development of Latino immigrants and their families through education, training, and employment. Reimagine Retail, an initiative of the Aspen Institute Economic Opportunities Program funded by the Walmart Foundation, explores ways to enhance job quality and improve mobility for the retail workforce. In Chicago, we partner with a collaborative of workforce organizations, including Instituto, that is testing approaches to advance and retain workers in the retail sector. We caught up with Alita Bezanis, director of organizational development at Pete’s, and Yesenia Cervantes, dean of student services and community affairs at Instituto, who were eager to share how the partnership supports growth for Pete’s — and for Pete’s workers.
Topic:
Labor Issues, Employment, Training, and Skilled Labor
Political Geography:
North America, Chicago, Illinois, and United States of America