Quality Upgrading, Skill Demand and International Trade: The Case of German Manufacturing
AbstractThe present paper contributes to the ongoing debate about how international trade can affect the demand for skills in industrial countries by estimating the impact of quality competition on the relative demand for low skilled workers in German manufacturing between 1995 and 2004. Results reveal a statistically significant negative effect albeit relatively small in size with quality competition accounting for approximately 5% of the overall decline in low skilled workers' wage bill share. This effect entirely stems from quality competition with other advanced countries. The influence of trade in different qualities with newly industrializing economies is negligible.
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Bibliographic InfoPaper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 110022.
Length: 29 pages
Date of creation: Oct 2011
Date of revision:
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international trade; quality differentiated products; labour demand;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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