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Human Capital, Exports, and Wages

  • Marcel Fafchamps

This paper tests whether manufacturing exports pay more to educated workers in an effort to ascertain whether the productivity of human capital is raised by exports. Using a panel of matched employer-employee data from Morocco, we fail to find convincing evidence that exporters pay more to educated workers. Although exporters pay more on average, much of the wage differential can be explained by the fact that exporters have a larger workforce and more capital. We also find that the wages of educated workers do not increase faster among exporters. Finally, educated workers who start working for an exporter do not experience a larger wage increase relative to their previous job. We discuss why our results differ from the literature.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number GPRG-WPS-069.

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Date of creation: 01 Mar 2007
Date of revision:
Handle: RePEc:oxf:wpaper:gprg-wps-069
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  3. Nina Pavcnik & Andreas Blom & Pinelopi Goldberg & Norbert Schady, 2004. "Trade Liberalization and Industry Wage Structure: Evidence from Brazil," World Bank Economic Review, World Bank Group, vol. 18(3), pages 319-344.
  4. Catia Batista, 2007. "Joining the EU: Capital Flows, Migration and Wages," Economics Series Working Papers 342, University of Oxford, Department of Economics.
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  7. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  8. James Tybout, 1999. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Development and Comp Systems 9906001, EconWPA, revised 10 Jun 1999.
  9. Orazio Attanasio & Pinelopi Goldberg & Nina Pavcnik, 2003. "Trade Reforms and Wage Inequiality in Colombia," NBER Working Papers 9830, National Bureau of Economic Research, Inc.
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  13. Robbins, Donald & Gindling, T H, 1999. "Trade Liberalization and the Relative Wages for More-Skilled Workers in Costa Rica," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 140-54, June.
  14. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
  15. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S44-71, July.
  16. Marcel Fafchamps & Måns Söderbom & Najy Benhassine, 2006. "Job Sorting in African Labor Markets," CSAE Working Paper Series 2006-02, Centre for the Study of African Economies, University of Oxford.
  17. Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers.
  18. Baldwin, Robert E, 1992. "Are Economists' Traditional Trade Policy Views Still Valid?," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 804-29, June.
  19. Bernard, A.B. & Jensen, J.B., 1994. "Exporters, Skill Upgrading, and the Wage Gap," Working papers 94-30, Massachusetts Institute of Technology (MIT), Department of Economics.
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