Exporters, Importers and Two-way traders: The links between internationalization, skills and wage

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Exporters, Importers and Two-way traders: The links between internationalization, skills and wage

Author Info

Francesco Serti
Chiara Tomasi
Antonello Zanfei

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Abstract

How do trade activities affect firms' employment and wages structures? Using firm level data on Italian manufacturing firms, this paper adds to the existing literature, by assessing how the degree of involvement in international trade impacts on workforce composition, earning levels and wage inequality. We differentiate firms involved in both trading activities - namely two-way traders - from firms that only export, and from those that only import. We show that two-way traders have a higher propensity to employ non-production workers, exhibit significant wage gaps, but also pay higher wages for both production and non production workers, relative to non international- ized firms and to firms which are involved only in either export or import. The paper also looks at how the wages and the skill structure of the trading firms change with the country of destination and origin and with the firms' sectoral and geographical diversification.

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Publisher Info
Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2008/05.

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Date of creation: 28 Mar 2008
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Handle: RePEc:ssa:lemwps:2008/05

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Paper
- Francesco Serti & Chiara Tomasi & Antonello Zanfei, 2007. "Exporters, Importers and Two-way Traders: the Links between Internationalization, Skills and Wages," Working Papers 0713, University of Urbino Carlo Bo, Department of Economics, revised 2007. [Downloadable!]

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-04-15 (All new papers)
NEP-INT-2008-04-15 (International Trade)
NEP-LAB-2008-04-15 (Labour Economics)

References listed on IDEAS
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Other versions:
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repec:rus:hseeco:122439 is not listed on IDEAS
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Other versions:
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