New Imported Inputs, Wages and Worker Mobility

Italo Colantone (), Alessia Matano and Paolo Naticchioni

No 201804, AQR Working Papers from University of Barcelona, Regional Quantitative Analysis Group

Abstract: We provide a comprehensive assessment of the effects of new imported inputs on wage dynamics, on the skill-composition of the labor force, on worker mobility,and on the efficiency of matching between firms and workers. We employ matched employer-employee data for Italy, over 1995-2007. We complement these data with information on the arrival of new imported inputs at the industry level. We find new imported inputs to have a positive effect on average wage growth at the firm level. This effect is driven by two factors: (1) an increase in the white-collar/blue-collar ratio; and (2) an increase in the average wage growth of blue-collar workers, while the wage growth of white collars is not significantly affected. The individual-level analysis reveals that the increase in the average wage of blue collars is driven by the displacement of the lowest paid workers, while continuously employed individuals are not affected. We estimate the unobserved skills of workers following Abowd et al(1999). We find evidence that new imported inputs lead to a positive selection of higher-skilled workers, and to an improvement in positive assortative matching between firms and workers.

Keywords: F14, F16. JEL classification: New imported inputs; wages; matched employer-employee data. (search for similar items in EconPapers)
Pages: 57 pages
Date: 2018-04, Revised 2018-04
New Economics Papers: this item is included in nep-eff, nep-int and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2018/201807.pdf (application/pdf)

Related works:
Journal Article: New imported inputs, wages and worker mobility (2020)
Working Paper: New Imported Inputs, Wages and Worker Mobility (2019)
Working Paper: New Imported Inputs, Wages and Worker Mobility (2018)
Working Paper: New Imported Inputs, Wages and Worker Mobility (2018)
Working Paper: New Imported Inputs, Wages and Worker Mobility (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aqr:wpaper:201804

Access Statistics for this paper

More papers in AQR Working Papers from University of Barcelona, Regional Quantitative Analysis Group Contact information at EDIRC.
Bibliographic data for series maintained by Bibiana Barnadas ().