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Export destinations and skill premium: Evidence from chinese manufacturing industries

Feicheng Wang, Chris Milner and Juliane Scheffel

No 2019-07, Discussion Papers from University of Nottingham, GEP

Abstract: This paper examines the relationship between average income of export destinations and skill premium using data of Chinese manufacturing industries from 1995 to 2008. To do so, we construct weighted average GDP per capita across destinations employing within-industry export share to each destination as weight, and then link it with industry-level wages and skill premium. We find that industries that export more to high-income destinations tend to pay a higher skill premium, suggesting that on average, skilled workers benefit more from high-income exports than unskilled workers. Our IV estimates confirm a causal relationship and the results are robust to various specifications. Our paper contributes to the understanding of the influence of export destinations on the uneven distributional effects of globalisation for different types of workers.

Keywords: Export destinations; Skill premium; Manufacturing industries; China JEL Classification: F14; F16; F66; J24; J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-lma, nep-tid and nep-tra
Date: 2019
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