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Firms’ exports, volatility and skills: Evidence from France

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  • Bas, Maria
  • Bombarda, Pamela
  • Jean, Sébastien
  • Orefice, Gianluca

Abstract

This paper studies the effects of globalization on the employment growth volatility by investigating the relationship between firms’ export intensity and labor demand volatility across skills. Based on detailed firm-level administrative French data for the period 1996–2007, we show that firms with intense export activity exhibit lower volatility of labor demand for skilled, compared to unskilled workers. Both the theoretical and empirical analysis point to the importance of skill-intensive fixed export costs in explaining this effect. Our identification strategy is based on an instrumental variable approach to provide evidence of causal effects. Our findings show that a higher level of export intensity increases the employment growth volatility for unskilled relative to skilled workers.

Suggested Citation

  • Bas, Maria & Bombarda, Pamela & Jean, Sébastien & Orefice, Gianluca, 2021. "Firms’ exports, volatility and skills: Evidence from France," European Economic Review, Elsevier, vol. 140(C).
  • Handle: RePEc:eee:eecrev:v:140:y:2021:i:c:s0014292121002385
    DOI: 10.1016/j.euroecorev.2021.103941
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    Cited by:

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    2. Kölling, Arnd & Mertens, Antje, 2020. "Exporting behavior and the demand for skills in German establishments," Working Papers 97, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    3. Andreas Hauptmann, 2019. "Worker turnover in German exporting establishments," Economics Bulletin, AccessEcon, vol. 39(2), pages 1266-1271.

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    More about this item

    Keywords

    Export intensity; Employment volatility; Skilled labor; Firm-level data;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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