Exporters, Engineers, and Blue-Collar Workers

16 Pages Posted: 19 Jul 2016

See all articles by Irene Brambilla

Irene Brambilla

Universidad Nacional de La Plata

Daniel Lederman

World Bank - Latin America and Caribbean Region

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics

Date Written: May 31, 2016

Abstract

This paper investigates differences in the composition of employment between exporting and non-exporting firms. In particular, it asks whether exporting firms hire more engineers relative to blue-collar workers than non-exporting firms. In a stylized partial-equilibrium model, firms produce goods of varying quality and exporters tend to produce higher quality goods, which are intensive in engineers relative to blue-collar workers. Firms are heterogeneous and more productive firms become exporters and have a higher demand for engineers. The paper provides causal evidence in support of these theories using the Chilean Encuesta Nacional Industrial Anual, an annual census of manufacturing firms. The results from an instrumental variable estimator suggest that Chilean exporters indeed utilize a higher share of engineers over blue-collar workers.

Keywords: Labor Markets, Rural Labor Markets, International Trade and Trade Rules

Suggested Citation

Brambilla, Irene and Lederman, Daniel and Porto, Guido G., Exporters, Engineers, and Blue-Collar Workers (May 31, 2016). World Bank Policy Research Working Paper No. 7686, Available at SSRN: https://ssrn.com/abstract=2811333

Irene Brambilla (Contact Author)

Universidad Nacional de La Plata ( email )

La Plata, Buenos Aires 1900
Argentina

Daniel Lederman

World Bank - Latin America and Caribbean Region ( email )

1818 H Street NW
Washington, DC 20433
United States

HOME PAGE: http://sites.google.com/site/danielledermanworldbank/

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics ( email )

1900 La Plata
Argentina

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