Wage structure effects of international trade: evidence from a small open economy

Philip Du Caju, Francois Rycx and Ilan Tojerow

No 1325, Working Paper Series from European Central Bank

Abstract: In the last decades, international trade has increased between industrialised countries and between high- and low-wage countries. This important change has raised questions on how international trade affects the labour market. In this spirit, this paper aims to investigate the impact of international trade on wage dispersion in a small open economy. It is one of the few to: i) use detailed matched employer-employee data to compute industry wage premia and disaggregated industry level panel data to examine the impact of changes in exports and imports on changes in wage differentials, ii) examine the impact of imports according to the country of origin. Looking at the export side, we find a positive effect of exports on the industry wage premium. The results also show that import penetration from low JEL Classification: F16, J31

Keywords: inter-industry wage differentials; international trade; matched employer-employee data; wage structure (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1325.pdf (application/pdf)

Related works:
Working Paper: Wage Structure Effects of International Trade: Evidence from a Small Open Economy (2011)
Working Paper: Wage structure effects of international trade: Evidence from a small open economy (2011)
Working Paper: Wage Structure Effects of International Trade: Evidence from a Small Open Economy (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20111325

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