Skill Premium in Chile: Studying Skill Upgrading in the South

SummaryI study whether the evolution of the relative demand for skilled workers is a consequence of international transmission of skill upgrading technologies from developed countries (in particular the US) to developing ones. Using data for Chile from 1960 to 2000, I present sectoral and macro evidence consistent with this hypothesis and that does not support alternative hypotheses related to trade theories emphasizing the role of price effects, trade in intermediate goods and outsourcing, or competition effects in tradable markets.