Firms' Exports, Volatility and Skills: Evidence from France

53 Pages Posted: 21 Feb 2019

See all articles by Maria Bas

Maria Bas

Université Paris I Panthéon-Sorbonne

Pamela Bombarda

University of Cergy-Pontoise

Sébastien Jean

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: 2019

Abstract

Inequalities between workers of different skills have been growing in the era of globalization. Firms’ internationalization mode has an impact on job stability. Exporting firms are not only exposed to different foreign shocks, they also pay skill-intensive fixed costs to serve foreign markets. This implies that, for larger exporters, the labor demand for skilled workers is expected to be less volatile than for unskilled workers. In this paper we study the relationship between firms’ export activity and job stability across employment skills. Relying on detailed firm-level data from France for the period 1996-2007, we show that firms with higher export intensity exhibit a lower volatility of skilled labor demand relative to the volatility of unskilled labor demand. Our identification strategy is based on an instrumental variable approach to provide evidence on the causal effect of the export performance of the firm on the volatility of employment of different skills. Our findings suggest that exporting increases the stability of skilled jobs, but feeds the precariousness of unskilled ones.

Keywords: exports, employment volatility, skilled labor, firm-level data

JEL Classification: F100, F160, L250, L600

Suggested Citation

Bas, Maria and Bombarda, Pamela and Jean, Sébastien and Orefice, Gianluca, Firms' Exports, Volatility and Skills: Evidence from France (2019). CESifo Working Paper No. 7516, Available at SSRN: https://ssrn.com/abstract=3338923

Maria Bas (Contact Author)

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

Pamela Bombarda

University of Cergy-Pontoise ( email )

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011
France

Sébastien Jean

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

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