2009/19 | LEM Working Paper Series | |
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The links between internationalization, skills and wages. The role of differences across firms and across partner countries. |
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Francesco Serti, Chiara Tomasi, Antonello Zanfei |
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Keywords | ||
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heterogeneous firms; exports; imports; wage; skills; market heterogeneity
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JEL Classifications | ||
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F10, F16, J21
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Abstract | ||
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Using firm level data on Italian manufacturing industry, we examine
how trade activities are related to workforce composition and wages.
We contribute to empirical research on these issues in three ways.
First, we provide novel evidence that is consistent with
multi-attribute models on firm heterogeneity and trade. In fact we
show that even after controlling for various firm characteristics,
including size and capital intensity, exporters still pay higher wages
and employ more skilled workers than non exporters. Second, we
consider the engagement of firms in international transactions, either
by means of exports, imports or a combination of the two. We show that
failing to control for the importing activities may bias upward export
premia. Third, we look at how the wage and the employment structures
of trading firms change with the country of destination and origin of
trade flows. We find that wage and skill premia increase for both
exporters and importers as they trade with more distant
markets. Richer countries are instead associated with higher premia
for importers and not for exporters.
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Downloads | ||
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