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Exports, Imports and Wages: Evidence from Matched Firm-Worker-Product Panels

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  • Martins, Pedro S.

    ()
    (Queen Mary, University of London)

  • Opromolla, Luca David

    ()
    (Banco de Portugal)

Abstract

The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, we also find significant differences in the relationship between trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate-) technology products tend to increase their salaries. Our analysis is based on unique data from Portugal, obtained by merging a matched firm-worker panel and a matched firm-transaction panel. Our data set follows the population of manufacturing firms and all their workers from 1995 to 2005 and allows for several control variables, including job-spell fixed effects.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4646.

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Length: 54 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4646

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Keywords: transaction data; globalisation and labour; wage differentials;

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References

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Citations

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Cited by:
  1. Du Caju, Philip & Rycx, Francois & Tojerow, Ilan, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," IZA Discussion Papers 5597, Institute for the Study of Labor (IZA).
  2. Alfonso A. Irarrazabal & Andreas Moxnes & Luca David Opromolla, 2011. "The Tip of the Iceberg: A Quantitative Framework for Estimating Trade Costs," Working Papers, Banco de Portugal, Economics and Research Department w201125, Banco de Portugal, Economics and Research Department.
  3. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: The case of Belgium," ULB Institutional Repository 2013/138896, ULB -- Universite Libre de Bruxelles.
  4. Michael W. Klein & Christoph Moser & Dieter M. Urban, 2010. "The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality," NBER Working Papers 15985, National Bureau of Economic Research, Inc.
  5. Giordano Mion & Luca David Opromolla, 2011. "Managers' Mobility, Trade Status and Wages," CEP Discussion Papers, Centre for Economic Performance, LSE dp1044, Centre for Economic Performance, LSE.
  6. Jayanthakumaran, Kankesu & Sangkaew, Piyapong & O’Brien, Martin, 2013. "Trade liberalisation and manufacturing wage premiums: Evidence from Thailand," Journal of Asian Economics, Elsevier, Elsevier, vol. 29(C), pages 15-23.
  7. Joachim Wagner, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," Working Paper Series in Economics, University of Lüneburg, Institute of Economics 210, University of Lüneburg, Institute of Economics.
  8. David Hummels & Rasmus J?rgensen & Jakob Munch & Chong Xiang, 2014. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data," American Economic Review, American Economic Association, American Economic Association, vol. 104(6), pages 1597-1629, June.
  9. Klein, Michael W. & Moser, Christoph & Urban, Dieter M., 2013. "Exporting, skills and wage inequality," Labour Economics, Elsevier, Elsevier, vol. 25(C), pages 76-85.
  10. Domenico Buccella, 2011. "Labor unions and economic integration: A review," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 25-89, January-D.

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