The main aim of this paper is to investigate the relationship between skill upgrading and measures of technology in Brazilian manufacturing for the last two decades. We use R&D intensity as a proxy for technological change. We find robust evidence of technology-skill complementarity, especially for the period between 1994 and 1997. Furthermore, when U.S. R&D intensity is used as an instrument for Brazilian R&D intensity, its impact on skill demand rises threefold. This provides us with evidence that technological transfer is impacting skill-upgrading in Brazil.
