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New Imported Inputs, Wages and Worker Mobility

Italo Colantone (), Alessia Matano () and Paolo Naticchioni ()
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Italo Colantone: Bocconi University. Via Roentgen 1, 20136, Milan (Italy).

No 201807, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: We provide a comprehensive assessment of the effects of new imported inputs on wage dynamics, on the skill-composition of the labor force, on worker mobility, and on the efficiency of matching between firms and workers. We employ matched employeremployee data for Italy, over 1995-2007. We complement these data with information on the arrival of new imported inputs at the industry level. We find new imported inputs to have a positive effect on average wage growth at the firm level. This effect is driven by two factors: (1) an increase in the white-collar/bluecollar ratio; and (2) an increase in the average wage growth of blue-collar workers, while the wage growth of white collars is not significantly affected. The individual-level analysis reveals that the increase in the average wage of blue collars is driven by the displacement of the lowest paid workers, while continuously employed individuals are not affected. We estimate the unobserved skills of workers following Abowd et al. (1999). We find evidence that new imported inputs lead to a positive selection of higher-skilled workers, and to an improvement in positive assortative matching between firms and workers.

Keywords: New imported inputs; wages; matched employer-employee data. JEL classification:F14; F16. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2018-04, Revised 2018-04
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Working Paper: New Imported Inputs, Wages and Worker Mobility (2018) Downloads
Working Paper: New Imported Inputs, Wages and Worker Mobility (2018) Downloads
Working Paper: New Imported Inputs, Wages and Worker Mobility (2018) Downloads
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