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International Trade and Inter-Industry Wage Structure in Swedish Manufacturing - Evidence from matched employer-employee data

Author

Listed:
  • Lundin, Nan Nan

    (Trade Union Institute for Economic Research)

  • Yun, Lihong

    (ESI)

Abstract

This study examines the inter-industry wage structure in Swedish manufacturing by using matched employer-employee data for the period 1996 to 2000. First, we use detailed individual and job characteristics to estimate industry-specific and time-varying wage premiums. Second, we investigate the impact of international trade on wage premiums, after controlling for effects of domestic competition and technical progress. Our results indicate that industries that face intensive import competition from low-income countries have lower wage premiums. Surprisingly, the wage premiums are not related to export intensities. Furthermore, technical progress, measured by investment in R&D activity, appears to enhance inter-industry wage premiums.

Suggested Citation

  • Lundin, Nan Nan & Yun, Lihong, 2004. "International Trade and Inter-Industry Wage Structure in Swedish Manufacturing - Evidence from matched employer-employee data," Working Paper Series 196, Trade Union Institute for Economic Research.
    • Handle: RePEc:hhs:fiefwp:0196
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    References listed on IDEAS

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    Cited by:

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    2. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: the case of Belgium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 297-331, June.
    3. Lundborg, Per, 2005. "Wage Fairness, Growth and the Utilization of R&D Workers," Working Paper Series 206, Trade Union Institute for Economic Research.
    4. Wagner, Joachim, 2011. "Productivity and International Firm Activities: What Do We Know?," IZA Policy Papers 23, Institute of Labor Economics (IZA).
    5. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," Working Papers CEB 11-011, ULB -- Universite Libre de Bruxelles.
    6. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.
    7. Lundborg, Per, 2005. "Wage Theories for the Swedish Labour Market," Working Paper Series 207, Trade Union Institute for Economic Research.
    8. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Inter-Industry Wage Differentials in Greece: Evidence from Quantile Regression Analysis," International Economic Journal, Taylor & Francis Journals, vol. 31(1), pages 51-67, January.
    9. Görzig, Bernd & Gornig, Martin & Werwatz, Axel, 2006. "Firm specific wage spread in Germany: Decomposition of regional differences in inter firm wage dispersion," SFB 649 Discussion Papers 2006-045, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    10. Allan Webster, 2014. "Wage Differentials and Their Determinants in US Tourism and Tourism-Associated Industries," Tourism Economics, , vol. 20(4), pages 695-725, August.
    11. Louren篠S. Paz, 2014. "Trade liberalization and the inter-industry wage premia: the missing role of productivity," Applied Economics, Taylor & Francis Journals, vol. 46(4), pages 408-419, February.
    12. Selén, Jan & Ståhlberg, Ann-Charlotte, 2004. "Wage and Compensation Inequality — How Different?," Working Paper Series 197, Trade Union Institute for Economic Research.
    13. Noria, Gabriela López, 2015. "The effect of trade and FDI on inter-industry wage differentials: The case of Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 381-397.
    14. repec:hum:wpaper:sfb649dp2006-045 is not listed on IDEAS
    15. Almut Balleer & Nikolay Hristov & Dominik Menno, 2017. "Financial Constraints and Nominal Price Rigidities," CESifo Working Paper Series 6309, CESifo.
    16. Evangelia Papapetrou & Pinelopi Tsalaporta, 2016. "Inter-industry wage differentials in Greece: rent-sharing and unobserved heterogeneity hypotheses," Working Papers 213, Bank of Greece.
    17. Asuyama, Yoko, 2011. "Skill sorting, inter-industry skill wage premium, and production chains: evidence from India 1999-2000," IDE Discussion Papers 278, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Inter-industry wage structure; International trade; Matched employer- employee data;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General

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