= the time period.

t We estimate equation (1) for 1992-99 manufacturing firms panel using a fixed-effects model. Tables 2 and 3 give separate results for wages and employment shares of skill groups, so we can use both to measure skill demand.

**Table 2. Wage Determinants, by Employee Skill Group**

|**Dependent variable:**|**Hig**|**hlyski**|**lled**|**Sem**|**i-skill**|**ed**|Lo|w**skill**|**ed**|
|---|---|---|---|---|---|---|---|---|---|
|**Shareofwages**|**Coeff.**||**t-Stat.**|**Coeff.**||**t-Stat.**|**Coeff.**||t-Stat.|
|Value-added|-0.0647|**|-4.161|0.0281|**|1.966|0.0365|**|3.241|
|Capital assets|0.0479|**|5.794|-0.0401|**|-5.270|-0.0078||-1.301|
|Wageratios/us|0.0082|**|2.061|0.1204|**|32.757|-0.1286|**|-44.456|
|TFP|0.0232|**|3.864|-0.0148|**|-2.681|-0.0084|*|-1.926|
|Unemploymentrate<br>|-0.0225<br>|**<br>|-2.636<br>|0.0146<br>|*<br>|1.850<br>|0.0080<br> <br>||1.285<br>|
|OverallR<sup>2</sup>||0.0315|||0.4550|||<br>|0.5508||

* **Significant** at **10%** level; ** Significant at 5% level. _Notes: I._ Number of observations **=** 1 **,185.**

2. Regressions included indicator variables for 9 manufacturing divisions.

3. Share of wages is the share of the **firm's** total wages paid to workers of a particular skill level.

**Table 3. Employment Determinants, by Employee Skill Group**

|**Dependent variable:**|**High**|**lySkil**|**led**|**Sem**|**i-skill**|**ed**|Lo|w**skill**|**ed**<br>|
|---|---|---|---|---|---|---|---|---|---|
|**Share ofEmployment**|**Coeff.**||**t-Stat.**|**Coeff.**||**t-Stat.**|**Coeff.**||**t-Stat.**|
|**AllEmvlovees**<br>||||||||||
|Value-added|-0.8129|**|-2.487|1.1669||0.687|-0.3552||-0.210|
|Capitalassets|0.7198|**|4.140|-1.1942||-1.321|0.4785||0.531|
|Wageratios/us|0.0704||0.837|14.9349|**|34.190|-15.0057|**|-34.455|
|TFP|0.3072|**|2.428|-0.5728||-0.871|0.2653||0.404|
|Unemploymentrate<br>|-0.0458||-0.255|3.3348|**|3.566|-3.2807|**|-3.518|
|OverallR<sup>2</sup>||0.0037|||0.5869|||0.5887||
|**Male**Employees||||||||||
|Value-added|-0.0076|*|-1.895|0.0412|*|1.735|-0.0210||-0.825|
|Capitalassets|0.0077|**|2.826|-0.0277|*|-1.714|0.0088||0.510|
|Wageratios/us|0.0007||0.671|0.1335|**|20.184|-0.1392|**|-19.679|
|TFP|0.0042|**|2.946|-0.0216|**|-2.527|0.0105||1.147|
|Unemploymentrate<br>|0.0008||0.084|0.0447||0.819|-0.0713||-1.221|
|OverallR<sup>2</sup>||0.0081|||0.4319|||0.3658||
|**FemaleEmployees**||||||||||
|Value-added|-0.0013||-1.193|-0.0340|**|-2.045|0.0226||1.499|
|Capitalassets|0.0011||1.541|0.0252|**|2.234|-0.0151||-1.480<br>|
|Wageratios/us|0.0003||1.051|0.0275|**|5.945|-0.0228|**|-5.435|
|TFP|0.0007|*|1.831|0.0094||1.565|-0.0032||-0.588|
|Unemploymentrate<br>|-0.0022||-0.900<br>|0.0341<br>||0.894<br>|-0.0061<br>||-0.175<br>|
|OverallR<sup>2</sup>||0.0145|||0.0057||||0.0353||

***** Significant at **10%** level; ** Significant at 5% level. _Notes: I._ Number _of_ observations= _1,185._

2. Regressions included indicator variables for 9 manufacturing divisions.

3. Share of employment is **the** share of the fimi's total employment held by workers of a particular skill level.

The effects of output growth vary between skill groups. It appears that growing firms are less likely to hire highly skilled male employees. In contrast, for the semi-skilled group and the 9