DP3406 Globalization and the demand for skill: An Export Based Channel

Author(s): Eric Maurin, David Thesmar, Mathias Thoenig
Publication Date: June 2002
Keyword(s): exportations, labour demand, organization of production, trade
JEL(s): F16, J23, L23
Programme Areas: Labour Economics, International Trade and Regional Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=3406

This Paper shows that international trade affects the demand for skill through an export-based channel. Our working hypothesis is that the very act of exporting requires an effort of skill upgrading, in particular among occupations related to marketing and development. Using firm level data, we estimate a model that breaks down production into two stages: product development and marketing, and actual production. Once we correct for biases arising from the endogeneity of export decision, we find strong support for our hypothesis. The skill requirement in development/marketing occupations increases with the share of exported output. Overall skill upgrading is as important among firms exporting to OECD countries as among those exporting outside of the OECD to the LDCs.