Globalization and the demand for skill: An Export Based Channel
AbstractThis Paper shows that international trade affects the demand for skill through an export-based channel. Our working hypothesis is that the very act of exporting requires an effort of skill upgrading, in particular among occupations related to marketing and development. Using firm level data, we estimate a model that breaks down production into two stages: product development and marketing, and actual production. Once we correct for biases arising from the endogeneity of export decision, we find strong support for our hypothesis. The skill requirement in development/marketing occupations increases with the share of exported output. Overall skill upgrading is as important among firms exporting to OECD countries as among those exporting outside of the OECD to the LDCs.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3406.
Date of creation: Jun 2002
Date of revision:
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Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-18 (All new papers)
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