Exporters, Engineers, and Blue-Collar Workers

This paper investigates differences in the composition of employment between exporting and non-exporting firms. In particular, it asks whether exporting firms hire more engineers relative to blue-collar workers than non-exporting firms. In a styliz...

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Bibliographic Details
Main Authors:	Brambilla, Irene, Lederman, Daniel, Porto, Guido
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	EMPLOYMENT EXPORT MARKETS EMPLOYMENT INFORMATION GOOD ACCOUNTING WORKERS WAGE GAP PRODUCTION WAGES POLICIES DOMESTIC MARKETS INTERNATIONAL TRADE PRODUCTION WORKERS SKILLED WORKERS VALUATION FINANCIAL CRISIS SALES INCOME WAGE INEQUALITY VALUE GUARANTEES PLANT SIZE RETURNS PRODUCTION FUNCTIONS MARGINAL COST EXPORT PERFORMANCE REAL GDP OPTION EXCHANGE DEMAND WAGE PREMIUM INFORMATION EXPORTS DEVELOPING COUNTRIES DOMESTIC MARKET AGGREGATE DEMAND DEMAND FUNCTION MARGINAL COSTS SKILL UPGRADING POLITICAL ECONOMY EXPORTERS FACTOR PRICES CONSUMERS PRODUCTIVE FIRMS FIRM PERFORMANCE LABOR ECONOMICS VARIABLES SHARES REAL EXCHANGE RATE PRICE MARKET PRODUCT QUALITY TRADE LIBERALIZATION RETURNS TO SCALE TOTAL SALES PRODUCTION FUNCTION ECONOMICS INPUT PRICES EXPORTER INTERNATIONAL BANK SKILLED LABOR MANAGEMENT INSTRUMENTS TRENDS CENTRAL BANK FOREIGN MARKETS TRADE GDP GOODS THEORY SHARE WORKER COMPETITIVE MARKETS CONSTANT RETURNS TO SCALE PRODUCTS PRODUCTIVITY LABOR PRODUCTIVITY MARKETS EMPLOYMENT COMPOSITION MARKETING ORGANIZATIONS UNSKILLED WORKERS RETURN EXCHANGE RATE INSTRUMENT INTERNATIONAL ECONOMICS PRODUCT LABOR OUTCOMES COST INCREASES TOTAL EMPLOYMENT UNSKILLED LABOR PRICES DEVELOPMENT POLICY
Online Access:	http://documents.worldbank.org/curated/en/2016/05/26419272/exporters-engineers-blue-collar-workers http://hdl.handle.net/10986/24527

Description
Summary:	This paper investigates differences in the composition of employment between exporting and non-exporting firms. In particular, it asks whether exporting firms hire more engineers relative to blue-collar workers than non-exporting firms. In a stylized partial-equilibrium model, firms produce goods of varying quality and exporters tend to produce higher quality goods, which are intensive in engineers relative to blue-collar workers. Firms are heterogeneous and more productive firms become exporters and have a higher demand for engineers. The paper provides causal evidence in support of these theories using the Chilean Encuesta Nacional Industrial Anual, an annual census of manufacturing firms. The results from an instrumental variable estimator suggest that Chilean exporters indeed utilize a higher share of engineers over blue-collar workers.

Exporters, Engineers, and Blue-Collar Workers

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