Trade Openness and the Skill Premium — An Inverted - ‘U’ Relation?

12 Pages Posted: 25 Jul 2016

See all articles by Damir Stijepic

Damir Stijepic

Johannes Gutenberg University Mainz

Date Written: June 25, 2016

Abstract

Relying on linked employer–employee data from the German manufacturing sector in 1996–2010, I study the relation between the share of exporting establishments and the skill premium within narrowly defined industries. I document that the skill premium tends to be higher in industries with a larger share of exporting establishments. However, once unobserved industry heterogeneity is taken into account, the empirical evidence suggests an inverted-‘U’ relation between the share of exporting establishments and the skill premium.

Keywords: skill premium, wage inequality, international trade, exporting, heterogeneous firms, linked employer–employee data

JEL Classification: F16, J31, J62

Suggested Citation

Stijepic, Damir, Trade Openness and the Skill Premium — An Inverted - ‘U’ Relation? (June 25, 2016). Available at SSRN: https://ssrn.com/abstract=2814152 or http://dx.doi.org/10.2139/ssrn.2814152

Damir Stijepic (Contact Author)

Johannes Gutenberg University Mainz ( email )

Jakob-Welder-Weg 9
Mainz, 55128
Germany

HOME PAGE: http://www.damir.stijepic.com

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