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RESEARCH PRODUCT

Trade Openness and the Skill Premium An Inverted - UU Relation?

Damir Stijepic

subject

GermanWage inequalityLabour economicsManufacturing sectorRelation (database)EconomicslanguageOpenness to experienceInverted uEmpirical evidencelanguage.human_language

description

Relying on linked employer–employee data from the German manufacturing sector in 1996–2010, I study the relation between the share of exporting establishments and the skill premium within narrowly defined industries. I document that the skill premium tends to be higher in industries with a larger share of exporting establishments. However, once unobserved industry heterogeneity is taken into account, the empirical evidence suggests an inverted-‘U’ relation between the share of exporting establishments and the skill premium.

https://doi.org/10.2139/ssrn.2814152