EconPapers    
Economics at your fingertips  
 

Exports and labor costs: Evidence from a French Policy

Clément Malgouyres () and Thierry Mayer ()

Sciences Po publications from Sciences Po

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: Labor costs; Firm-level exports; Competitiveness (search for similar items in EconPapers)
JEL-codes: H32 F14 F16 D04 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-int
Date: 2018-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Review of World Economics, 2018, vol. 154, pp.429-454

Downloads: (external link)
http://spire.sciencespo.fr/hdl:/2441/juegcqdoe81pq ... -a-french-policy.pdf (application/pdf)

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:spo:wpmain:info:hdl:2441/juegcqdoe81pq2u57eide0qm5

Access Statistics for this paper

More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().

 
Page updated 2019-03-26
Handle: RePEc:spo:wpmain:info:hdl:2441/juegcqdoe81pq2u57eide0qm5