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- Publisher Website: 10.1016/j.jinteco.2012.01.001
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Article: Labor market institutions, firm-specific skills, and trade patterns
Title | Labor market institutions, firm-specific skills, and trade patterns |
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Authors | |
Keywords | Trade patterns Firm-specific skills Labor market institutions Margins of trade |
Issue Date | 2012 |
Citation | Journal of International Economics, 2012, v. 87, n. 2, p. 337-351 How to Cite? |
Abstract | This paper studies how a country's labor market institutions, by affecting workers' skill acquisition, can shape its export patterns. I develop an open-economy model in which workers undertake non-contractible activities to acquire firm-specific skills on the job. In the model, labor market protection raises workers' incentives to acquire firm-specific skills relative to general skills, turning labor laws into a source of comparative advantage. In particular, the model shows that countries with more protective labor laws export relatively more in firm-specific skill-intensive sectors at both the intensive and extensive margins. To test the theoretical predictions, I construct sector proxies for the firm-specific and industry-specific skill intensity by estimating returns to firm tenure and industry tenure for different U.S. manufacturing sectors during the 1974-1993 period. By estimating sector-level gravity equations for 84 countries using the Helpman-Melitz-Rubinstein (2008) framework, I find evidence supporting the predicted effects of labor market institutions at both margins of exports. © 2012 Elsevier B.V. |
Persistent Identifier | http://hdl.handle.net/10722/273515 |
ISSN | 2023 Impact Factor: 3.8 2023 SCImago Journal Rankings: 4.583 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Tang, Heiwai | - |
dc.date.accessioned | 2019-08-12T09:55:49Z | - |
dc.date.available | 2019-08-12T09:55:49Z | - |
dc.date.issued | 2012 | - |
dc.identifier.citation | Journal of International Economics, 2012, v. 87, n. 2, p. 337-351 | - |
dc.identifier.issn | 0022-1996 | - |
dc.identifier.uri | http://hdl.handle.net/10722/273515 | - |
dc.description.abstract | This paper studies how a country's labor market institutions, by affecting workers' skill acquisition, can shape its export patterns. I develop an open-economy model in which workers undertake non-contractible activities to acquire firm-specific skills on the job. In the model, labor market protection raises workers' incentives to acquire firm-specific skills relative to general skills, turning labor laws into a source of comparative advantage. In particular, the model shows that countries with more protective labor laws export relatively more in firm-specific skill-intensive sectors at both the intensive and extensive margins. To test the theoretical predictions, I construct sector proxies for the firm-specific and industry-specific skill intensity by estimating returns to firm tenure and industry tenure for different U.S. manufacturing sectors during the 1974-1993 period. By estimating sector-level gravity equations for 84 countries using the Helpman-Melitz-Rubinstein (2008) framework, I find evidence supporting the predicted effects of labor market institutions at both margins of exports. © 2012 Elsevier B.V. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of International Economics | - |
dc.subject | Trade patterns | - |
dc.subject | Firm-specific skills | - |
dc.subject | Labor market institutions | - |
dc.subject | Margins of trade | - |
dc.title | Labor market institutions, firm-specific skills, and trade patterns | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jinteco.2012.01.001 | - |
dc.identifier.scopus | eid_2-s2.0-84862538570 | - |
dc.identifier.volume | 87 | - |
dc.identifier.issue | 2 | - |
dc.identifier.spage | 337 | - |
dc.identifier.epage | 351 | - |
dc.identifier.isi | WOS:000306775600012 | - |
dc.identifier.issnl | 0022-1996 | - |