This paper examines the effects that purchased services and imported intermediate materials have on the labour demand for different skills in the manufacturing sector. We derive and estimate a factor demand system based on the generalised Box-Cox cost function nesting both the normalised...

An emerging literature argues that changes in the allocation of workplace 'tasks' between capital and labor, and between domestic and foreign workers, has altered the structure of labor demand in industrialized countries and fostered employment polarization - that is, rising employment in the...