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Exporters, Importers and Two-way Traders: the Links between Internationalization, Skills and Wages

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Author Info
Francesco Serti () (Scuola Superiore S. Anna, Pisa)
Chiara Tomasi () (Scuola Superiore S. Anna, Pisa & Università di Urbino)
Antonello Zanfei () (Istituto di Scienze Economiche, Università degli Studi di Urbino "Carlo Bo")

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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 internationalized 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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File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_07_13.pdf
File Format: application/pdf
File Function: First version, 2007
Download Restriction: no

Publisher Info
Paper provided by University of Urbino Carlo Bo, Department of Economics in its series Working Papers with number 0713.

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Length: 35 pages
Date of creation: 2007
Date of revision: 2007
Handle: RePEc:urb:wpaper:07_13

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Web page: http://www.econ.uniurb.it/
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Related research
Keywords: heterogeneous firms; exports; imports; wage inequality; skills.;

Other versions of this item:

Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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  1. Alessandra Tucci, 2005. "Trade, Foreign Networks and Performance: a Firm-Level Analysis for India," Development Working Papers 199, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
  2. Lawrence F. Katz & Kevin M. Murphy, 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," NBER Working Papers 3927, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Halpern, László & Koren, Miklós & Szeidl, Adam, 2005. "Imports and Productivity," CEPR Discussion Papers 5139, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Griffith, Rachel & Harrison, Rupert & Van Reenen, John, 2004. "How Special is the Special Relationship? Using the Impact of US R&D Spillovers on UK Firms as a Test of Technology Sourcing," CEPR Discussion Papers 4698, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November. [Downloadable!] (restricted)
    Other versions:
  7. Bernhard Heitger & J¸rgen Stehn, 2003. "Trade, Technical Change, and Labour Market Adjustment," The World Economy, Blackwell Publishing, vol. 26(10), pages 1481-1502, November. [Downloadable!] (restricted)
  8. repec:rus:hseeco:122439 is not listed on IDEAS
  9. Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2007. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Journal of International Economics, Elsevier, vol. 72(1), pages 52-74, May. [Downloadable!] (restricted)
    Other versions:
  10. Paolo Manasse & Luca Stanca, 2003. "Working on the Train? The Role of Technical Progress and Trade in Explaining Wage Differentials in Italian Firms," Development Working Papers 177, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
    Other versions:
  11. Maurin, Eric & Thesmar, David & Thoenig, Mathias, 2002. "Globalization and the demand for skill: An Export Based Channel," CEPR Discussion Papers 3406, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  12. Biscourp, Pierre & Kramarz, Francis, 2007. "Employment, skill structure and international trade: Firm-level evidence for France," Journal of International Economics, Elsevier, vol. 72(1), pages 22-51, May. [Downloadable!] (restricted)
    Other versions:
  13. Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  14. Mirabelle Muûls & Mauro Pisu, 2007. "Imports and Exports at the Level of the Firm: Evidence from Belgium," CEP Discussion Papers dp0801, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  15. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March. [Downloadable!]
  16. Bradford J Jensen & Andrew B Bernard, 1994. "Exporters, Skill Upgrading And The Wage Gap," Working Papers 94-13, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
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