Exports, Imports and Wages: Evidence from Matched Firm-Worker-Product Panels

Pedro Martins and Luca David Opromolla

No 4646, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, we also find significant differences in the relationship between trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate-) technology products tend to increase their salaries. Our analysis is based on unique data from Portugal, obtained by merging a matched firm-worker panel and a matched firm-transaction panel. Our data set follows the population of manufacturing firms and all their workers from 1995 to 2005 and allows for several control variables, including job-spell fixed effects.

Keywords: transaction data; globalisation and labour; wage differentials (search for similar items in EconPapers)
JEL-codes: F15 F16 J31 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2009-12
New Economics Papers: this item is included in nep-bec, nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Working Paper: Exports, Imports and Wages:Evidence from Matched Firm-Worker-Product Panels (2010)
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