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Trade, Firms, and Wages: Theory and Evidence / Mary Amiti, Donald R. Davis.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Amiti, Mary.
Contributor:
National Bureau of Economic Research.
Davis, Donald R.
Series:
Working Paper Series (National Bureau of Economic Research) no. w14106.
NBER working paper series no. w14106
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Trade, Firms, and Wages
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2008.
Summary:
How does trade liberalization affect wages? This is the first paper to consider in theory and data how the impact of final and intermediate input tariff cuts on workers' wages varies with the global engagement of their firm. Our model predicts that a fall in output tariffs lowers wages at import-competing firms, but boosts wages at exporting firms. Similarly, a fall in input tariffs raises wages at import-using firms relative to those at firms that only source locally. Using highly detailed Indonesian manufacturing census data for the period 1991 to 2000, we find considerable support for the model's predictions.
Notes:
Print version record
June 2008.

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