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Globalization and the demand for skill: An Export Based Channel

  • Maurin, Eric
  • Thesmar, David
  • Thoenig, Mathias

This Paper shows that international trade affects the demand for skill through an export-based channel. Our working hypothesis is that the very act of exporting requires an effort of skill upgrading, in particular among occupations related to marketing and development. Using firm level data, we estimate a model that breaks down production into two stages: product development and marketing, and actual production. Once we correct for biases arising from the endogeneity of export decision, we find strong support for our hypothesis. The skill requirement in development/marketing occupations increases with the share of exported output. Overall skill upgrading is as important among firms exporting to OECD countries as among those exporting outside of the OECD to the LDCs.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3406.

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Date of creation: Jun 2002
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Handle: RePEc:cpr:ceprdp:3406
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  1. Thoenig, M. & Verdier, T., 2000. "Trade Induced Technical Bias and Wage Inequalities: a Theory of Defensive Innovation," DELTA Working Papers 2000-02, DELTA (Ecole normale supérieure).
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  7. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.).
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  9. Gary Burtless, 1995. "International Trade and the Rise in Earnings Inequality," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 800-816, June.
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  11. Bernard, Andrew B. & Jensen, J. Bradford, 1997. "Exporters, skill upgrading, and the wage gap," Journal of International Economics, Elsevier, vol. 42(1-2), pages 3-31, February.
  12. Dominique Goux & Eric Maurin, 1998. "The Decline in Demand for Unskilled Labor : An Empirical Analysis Method and its Application to France," Working Papers 98-53, Centre de Recherche en Economie et Statistique.
  13. David Thesmar & Mathias Thoenig, 2000. "Creative Destruction and Firm Organization Choice," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00485579, HAL.
  14. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
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  16. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
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