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Impact of Trade on Productivity of Skilled and Unskilled Intensive Industries: A Cross-Country Investigation

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Author Info
Sohrab Abizadeh () (Department of Economics, University of Winnipeg)
Manish Pandey () (Department of Economics, University of Winnipeg)
Mehmet Serkan Tosun () (University of Nevada, Reno)

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Abstract

This paper examines the effect of trade openness on the productivity of skilled labor intensive and unskilled labor intensive industries in the group of 20 OECD countries. Using panel data and fixed effects approach, we find that skilled workers’ relative gains in productivity exceed those of their unskilled counterpart. Given this differential impact of trade openness on the relative productivity of the skilled and unskilled intensive industries, our findings lend support to the conclusions of past studies that skilled labor is likely to be more pro trade than unskilled labor.

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File URL: http://www.business.unr.edu/econ/wp/papers/UNRECONWP07007.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics in its series Working Papers with number 07-007.

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Length: 24 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:unr:wpaper:07-007

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Related research
Keywords: Trade openness; Skilled intensive industries; Unskilled intensive industries; Productivity;

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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-national Evidence," Electronic Working Papers 99-003, University of Maryland, Department of Economics. [Downloadable!]
    Other versions:
  4. Werner Antweiler & Daniel Trefler, 2002. "Increasing Returns and All That: A View from Trade," American Economic Review, American Economic Association, vol. 92(1), pages 93-119, March. [Downloadable!]
    Other versions:
  5. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October. [Downloadable!] (restricted)
  6. Eugene Beaulieu & Vivek Dehejia & Hazrat-Omar Zakhilwal, 2004. "International Trade, Labour Turnover, and the Wage Premium: Testing the Bhagwati-Dehejia Hypothesis for Canada," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  11. Rodrik, Rani, 1995. "Trade and industrial policy reform," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 45, pages 2925-2982 Elsevier. [Downloadable!] (restricted)
  12. Beñat Bilbao-Osorio & Andrés Rodríguez-Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 35(4), pages 434-455. [Downloadable!] (restricted)
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  15. Sohrab Abizadeh & Mehmet Serkan Tosun, 2007. "Open trade and skilled and unskilled labor productivity in developing countries: A panel data analysis," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 16(3), pages 383-399. [Downloadable!] (restricted)
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