EconPapers    
Economics at your fingertips  
 

Exports and labor costs: Evidence from a French Policy

Clément Malgouyres () and Thierry Mayer ()

No 12728, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We investigate the role that labor costs hold in exporters' performance. To do so, we exploit a large-scale French reform that granted most firms a tax credit proportional to the wagebill of their employees paid below a given threshold. This policy effectively translated into a cut in labor cost whose magnitude varies depending on firm-specific wage structures. We use the predicted treatment intensity based on pre-reform composition of the labor force as an instrument for the actual policy-induced firm-level change in labor costs. Although our point estimates are consistent with commonly estimated firm-level trade elasticities combined with reasonable labor shares in total costs, coefficients are found to be very noisy, suggesting lack of robust evidence of a causal effect of the policy. We discuss several potential explanations for our results as well as their implications.

Keywords: competitiveness; firm-level exports; labor costs (search for similar items in EconPapers)
JEL-codes: D04 F14 F16 H32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-int
Date: 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12728 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Exports and labor costs: evidence from a French policy (2018) Downloads
Working Paper: Exports and labor costs: Evidence from a French Policy (2018) Downloads
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:cpr:ceprdp:12728

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12728

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-03-26
Handle: RePEc:cpr:ceprdp:12728