Economics at your fingertips  

The Dynamic Effects of Export and Technological Changes on Relative Wages

Saeed Rasekhi () and Iman Cheratian ()
Additional contact information
Saeed Rasekhi: Department of Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

Iranian Economic Review (IER), 2019, vol. 23, issue 4, 963-992

Abstract: The links among trade, technological changes, and worker earnings have been the subject of intense research during the past few decades. The current literature on this subject shows that trade liberalization and technological changes are the main drivers of demand for skilled workers and a rise in the wage premium. In the present article, a panel of 134 Iranian manufacturing industries over the period 2004-2013 and System GMM estimator was used to examine the effect of export(as a proxy for trade) and technological changes on relative wages in high-tech and nonhigh-tech industries. Our findings show that the estimates are affected by a strong path-dependency in relative wages of both subgroups. Moreover, the education, capital-labor ratio, and total factor productivity (TFP) have a positive and significant impact on relative wages in both groups of the industries. Nevertheless, these variables are more effective in high-tech industries rather than non-high-tech ones. Finally, firms’ decision for entering into international markets puts a positive effect on labors’ earning. While to increase the market share, firms have to cover the trade costs by adjusting the cost of production factors such as labor force or capital.

Keywords: Relative Wages; Export; Technological Changes; High-tech Industry; Non-high-tech Industry. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this article

Iranian Economic Review (IER) is currently edited by Dr.Hossien Abbasinejad

More articles in Iranian Economic Review (IER) from Faculty of Economics,University of Tehran.Tehran,Iran Contact information at EDIRC.
Bibliographic data for series maintained by [z.rahimalipour] ().

Page updated 2020-11-11
Handle: RePEc:eut:journl:v:23:y:2019:i:4:p:963