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Import quality upgrading and skill premium: Evidence from China

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  • Meici Yu
  • Chunjiao Yu

Abstract

This paper investigates the impact of import quality upgrading on the skill premium in China. It is found that the quality upgrading of imported goods generally increases the skill premium, and this effect is particularly reflected in the labor groups of women older than 35 years and those in the industrial and service sectors, nonpublic enterprises and the eastern region of China. In addition, the quality upgrading of imported consumer goods decreases the skill premium through the skill substitution mechanism, while the quality upgrading of imported intermediate goods and capital goods increases the skill premium through the mechanisms of skill complementation, skill-biased technological progress and final goods quality upgrading. Moreover, there is an inverted U-shaped relationship between the quality upgrading of imported goods and the skill premium. These results imply that increasing the supply of high-skilled labor is helpful for weakening the effect of the skill wage gap induced by quality upgrading of the imported goods.

Suggested Citation

  • Meici Yu & Chunjiao Yu, 2026. "Import quality upgrading and skill premium: Evidence from China," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 35(1), pages 28-57, January.
    • Handle: RePEc:taf:jitecd:v:35:y:2026:i:1:p:28-57
    DOI: 10.1080/09638199.2025.2580982
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