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Impact of Trade on Productivity of Skilled and Unskilled Intensive Industries: A Cross-Country Investigation

Sohrab Abizadeh, Manish Pandey and Mehmet Serkan Tosun ()

No 07-007, Working Papers from University of Nevada, Reno, Department of Economics

Abstract: This paper examines the effect of trade openness on the productivity of skilled labor intensive and unskilled labor intensive industries in the group of 20 OECD countries. Using panel data and fixed effects approach, we find that skilled workers’ relative gains in productivity exceed those of their unskilled counterpart. Given this differential impact of trade openness on the relative productivity of the skilled and unskilled intensive industries, our findings lend support to the conclusions of past studies that skilled labor is likely to be more pro trade than unskilled labor.

Keywords: Trade openness; Skilled intensive industries; Unskilled intensive industries; Productivity (search for similar items in EconPapers)
JEL-codes: F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-int and nep-lab
Date: 2007-11
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http://www.business.unr.edu/econ/wp/papers/UNRECONWP07007.pdf First version, 2007 (application/pdf)

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Persistent link: http://EconPapers.repec.org/RePEc:unr:wpaper:07-007

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