Replication data for: Trade-Induced Structural Change and the Skill Premium

Principal Investigator(s):  View help for Principal Investigator(s) Javier Cravino; Sebastian Sotelo

Version:  View help for Version V1

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Project Citation: 

Cravino, Javier, and Sotelo, Sebastian. Replication data for: Trade-Induced Structural Change and the Skill Premium. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116418V1

Project Description

Summary:  View help for Summary We study how international trade affects manufacturing employment and the relative wage of unskilled workers when goods and services are traded with different intensities. Manufacturing trade reduces manufacturing prices worldwide, which reduces manufacturing employment if manufactures and services are complements. International trade also raises real income, which reduces manufacturing employment if services are more income elastic than manufactures. Manufacturing production is unskilled-labor-intensive, so that these changes increase the skill premium. We incorporate these mechanisms in a quantitative trade model and show that reductions in trade costs had a negative impact on manufacturing employment and the relative wage of unskilled workers.

Scope of Project

Subject Terms:  View help for Subject Terms Structural Change; International Trade
JEL Classification:  View help for JEL Classification
      F16 Trade and Labor Market Interactions
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J31 Wage Level and Structure; Wage Differentials
      L60 Industry Studies: Manufacturing: General
Geographic Coverage:  View help for Geographic Coverage International
Time Period(s):  View help for Time Period(s) 1995 – 2007
Data Type(s):  View help for Data Type(s) aggregate data

Methodology

Data Source:  View help for Data Source World Input Output Database Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015), "An Illustrated User Guide to the World Input-Output Database: the Case of Global Automotive Production", Review of International Economics., 23: 575-605
Unit(s) of Observation:  View help for Unit(s) of Observation Country,

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V1 [2019-12-07]

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