| Skill-biased technology hypothesis describes that the skill-biased technology will promotethe increase in relative demand for skilled labor, while expanding the wage gap between skilledlabor and low-skilled labor. FDI technology spillover is an important source of China’sabsorption of foreign advanced technology. It is worth thoroughly discussion whether the FDItechnology spillover is one type of skill-biased technology. After the review of the literature theFDI technology spillover is divided into two different kinds of spillovers, market-oriented FDItechnology spillover and export-oriented FDI technology FDI technology spillover. This paperwill investigate the effects of skill structure of the employment and the skill premium. The papershows that market-oriented FDI technology spillover will decrease the portion of skilled laborsand increase the skill premium. However, the export-oriented FDI technology spillover willincrease the portion of skilled labor and the skill premium. Besides, the R&D of the industry isskill-biased. In the end, this paper give some suggestions such as optimized the FDI structure,enhance the absorption capacity of domestic enterprises, improve the supply of highly skilledlabor as well as to strengthen the R&D investment. |
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