Measured Skill Premia and Input Trade Liberalization: Evidence from Chinese Firms

Bo Chen, Miaojie Yu () and Zhihao Yu ()
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Bo Chen: Huazhong University of Science and Technology
Miaojie Yu: Peking University
Zhihao Yu: Carleton University

A chapter in Input Trade Liberalization in China, 2023, pp 205-229 from Springer

Abstract: Abstract Using Chinese firm-level production data, this paper developed a Mincer (Schooling, experience and earnings. Columbia University Press for the National Bureau of Economic Research, 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.

JEL-codes: F10 F12 F14 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-981-99-7599-0_9

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DOI: 10.1007/978-981-99-7599-0_9

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