Big Data

Exports, Imports And Wages: Evidence From Matched Firm-Worker-Product Panels

Date Added: Feb 2010
Format: PDF

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, the author shows in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, it's also found 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.