The Labor Content of Exports Database

59 Pages Posted: 20 Apr 2016

See all articles by Massimiliano Calì

Massimiliano Calì

Overseas Development Institute (ODI)

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Claire H. Hollweg

World Bank

Miriam Manchin

University College London; Centro Studi Luca d'Agliano

Doris Anita Oberdabernig

University of Bern

Hugo Rojas-Romagosa

CPB Netherlands Bureau for Economic Policy Analysis

Stela Rubínová

Graduate Institute of International and Development Studies (IHEID)

Patrick Tomberger

Johannes Kepler University Linz

Date Written: March 28, 2016

Abstract

This paper develops a novel methodology to measure the quantity of jobs and value of wages embodied in exports for a large number of countries and sectors for intermittent years between 1995 and 2011. The resulting Labor Content of Exports database allows the examination of the direct contribution of labor to exports as well as the indirect contribution via other sectors of the economy for skilled and unskilled labor. The analysis of the new data sets documents several new findings. First, the global share of labor value added in exports has been declining globally since 1995, but it has increased in low-income countries. Second, in line with the standard Hecksher-Ohlin trade model, the composition of labor directly contained in exports is skewed toward skilled labor in high-income countries relative to developing countries. However, that is not the case for the indirect labor content of exports. Third, manufacturing exports are a key source of labor demand in other sectors, especially in middle- and low-income countries. And the majority of the indirect demand for labor spurred by exports is in services sectors, whose workers are the largest beneficiaries of exporting activities globally. Fourth, differences in the labor value added in exports share across developing countries appears to be driven more by differences in the composition of exports rather than in sector labor intensities. Finally, average wages typically increase rapidly enough with the process of economic development to more than compensate the loss in jobs per unit of exports. The paper also includes the necessary information to build the Labor Content of Exports database from the original raw data, including stata do-files and matlab files, as well as descriptions of the variables in the data set.

Keywords: International Trade and Trade Rules

Suggested Citation

Cali, Massimiliano and Francois, Joseph F and Hollweg, Claire H. and Manchin, Miriam and Oberdabernig, Doris Anita and Rojas-Romagosa, Hugo and Rubínová, Stela and Tomberger, Patrick, The Labor Content of Exports Database (March 28, 2016). World Bank Policy Research Working Paper No. 7615. Available at SSRN: https://ssrn.com/abstract=2755806

Massimiliano Cali (Contact Author)

Overseas Development Institute (ODI) ( email )

111 Westminster Bridge Road
London
United Kingdom

Joseph F Francois

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Claire H. Hollweg

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Miriam Manchin

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Centro Studi Luca d'Agliano ( email )

Via Conservatorio 7
Milan, 20122
Italy

Doris Anita Oberdabernig

University of Bern

Gesellschaftsstrasse 49
Bern, BERN 3001
Switzerland

Hugo Rojas-Romagosa

CPB Netherlands Bureau for Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 70-338 3338 (Phone)
+31 70-338 3350 (Fax)

HOME PAGE: http://www.cpb.nl

Stela Rubínová

Graduate Institute of International and Development Studies (IHEID)

Case postale 136
Geneva, 1211
Switzerland

Patrick Tomberger

Johannes Kepler University Linz

Altenbergerstrasse 69
Linz, A4040
Austria

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