Measured skill premia and input trade liberalization: Evidence from Chinese firms

Bo Chen, Miaojie Yu and Zhihao Yu ()

Journal of International Economics, 2017, vol. 109, issue C, 31-42

Abstract: Using Chinese firm-level production data, this paper developed a Mincer (1974)-type approach to investigate the impact of input trade liberalization on firms' wage inequality between skilled and unskilled workers (or skill premium). When controlling for product-market tariffs in a firm's industry, we find robust evidence that reduced input tariffs in a firm's industry are associated with a higher skill premium at firms with more skilled workforces. This effect is more pronounced at ordinary (non-processing) firms. We also provide evidence that reduced input tariffs in a firm's industry are associated with higher value added and profits at firms with more skilled workforces.

Keywords: Skill premium; Input trade liberalization; Firm evidence (search for similar items in EconPapers)
JEL-codes: F10 F12 F14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:109:y:2017:i:c:p:31-42

DOI: 10.1016/j.jinteco.2017.08.005

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