High-income export destinations, quality and wages

Autores
Brambilla, María Irene; Porto, Guido Gustavo
Año de publicación
2016
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
This paper establishes a link between the income level of the destination countries and the level of average wages in the exporting country across the world economy. We use cross-country panel data to set up an instrumental variable model of high-income export destinations and wages. We find robust evidence that, worldwide, industries that ship products to high-income destinations do pay higher average wages. Our IV results indicate this is a causal relationship. We also explore the operating mechanisms, and find robust evidence in support of a dual link. First, industries that ship products to high-income destination export higher quality goods (as measured by the average unit value of exports within industries). This is because high-income countries demand high-quality products. Second, the provision of quality is costly and requires more intensive use of higher-wage skilled labor. As a result, the production of higher quality products at the industry level creates a wage premium and conduces to higher average industry wages.
Fil: Brambilla, María Irene. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. African Center for Economic Transformation; Ghana
Materia
Export Destinations
Exports
Quality
Skilled Labor
Vertical Differentiation
Wages
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/54188
Acceder
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repository_id_str 3498
network_name_str CONICET Digital (CONICET)
spelling High-income export destinations, quality and wagesBrambilla, María IrenePorto, Guido GustavoExport DestinationsExportsQualitySkilled LaborVertical DifferentiationWageshttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This paper establishes a link between the income level of the destination countries and the level of average wages in the exporting country across the world economy. We use cross-country panel data to set up an instrumental variable model of high-income export destinations and wages. We find robust evidence that, worldwide, industries that ship products to high-income destinations do pay higher average wages. Our IV results indicate this is a causal relationship. We also explore the operating mechanisms, and find robust evidence in support of a dual link. First, industries that ship products to high-income destination export higher quality goods (as measured by the average unit value of exports within industries). This is because high-income countries demand high-quality products. Second, the provision of quality is costly and requires more intensive use of higher-wage skilled labor. As a result, the production of higher quality products at the industry level creates a wage premium and conduces to higher average industry wages.Fil: Brambilla, María Irene. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaFil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. African Center for Economic Transformation; GhanaElsevier2016-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/54188Brambilla, María Irene; Porto, Guido Gustavo; High-income export destinations, quality and wages; Elsevier; Journal of International Economics; 98; 1-2016; 21-351873-0353CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0022199615001439info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jinteco.2015.09.004info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-nd/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-10-22T11:05:36Zoai:ri.conicet.gov.ar:11336/54188instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-10-22 11:05:36.971CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv High-income export destinations, quality and wages
title High-income export destinations, quality and wages
spellingShingle High-income export destinations, quality and wages
Brambilla, María Irene
Export Destinations
Exports
Quality
Skilled Labor
Vertical Differentiation
Wages
title_short High-income export destinations, quality and wages
title_full High-income export destinations, quality and wages
title_fullStr High-income export destinations, quality and wages
title_full_unstemmed High-income export destinations, quality and wages
title_sort High-income export destinations, quality and wages
dc.creator.none.fl_str_mv Brambilla, María Irene
Porto, Guido Gustavo
author Brambilla, María Irene
author_facet Brambilla, María Irene
Porto, Guido Gustavo
author_role author
author2 Porto, Guido Gustavo
author2_role author
dc.subject.none.fl_str_mv Export Destinations
Exports
Quality
Skilled Labor
Vertical Differentiation
Wages
topic Export Destinations
Exports
Quality
Skilled Labor
Vertical Differentiation
Wages
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv This paper establishes a link between the income level of the destination countries and the level of average wages in the exporting country across the world economy. We use cross-country panel data to set up an instrumental variable model of high-income export destinations and wages. We find robust evidence that, worldwide, industries that ship products to high-income destinations do pay higher average wages. Our IV results indicate this is a causal relationship. We also explore the operating mechanisms, and find robust evidence in support of a dual link. First, industries that ship products to high-income destination export higher quality goods (as measured by the average unit value of exports within industries). This is because high-income countries demand high-quality products. Second, the provision of quality is costly and requires more intensive use of higher-wage skilled labor. As a result, the production of higher quality products at the industry level creates a wage premium and conduces to higher average industry wages.
Fil: Brambilla, María Irene. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Porto, Guido Gustavo. Universidad Nacional de La Plata. Facultad de Ciencias Económicas; Argentina. African Center for Economic Transformation; Ghana
description This paper establishes a link between the income level of the destination countries and the level of average wages in the exporting country across the world economy. We use cross-country panel data to set up an instrumental variable model of high-income export destinations and wages. We find robust evidence that, worldwide, industries that ship products to high-income destinations do pay higher average wages. Our IV results indicate this is a causal relationship. We also explore the operating mechanisms, and find robust evidence in support of a dual link. First, industries that ship products to high-income destination export higher quality goods (as measured by the average unit value of exports within industries). This is because high-income countries demand high-quality products. Second, the provision of quality is costly and requires more intensive use of higher-wage skilled labor. As a result, the production of higher quality products at the industry level creates a wage premium and conduces to higher average industry wages.
publishDate 2016
dc.date.none.fl_str_mv 2016-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/54188
Brambilla, María Irene; Porto, Guido Gustavo; High-income export destinations, quality and wages; Elsevier; Journal of International Economics; 98; 1-2016; 21-35
1873-0353
CONICET Digital
CONICET
url http://hdl.handle.net/11336/54188
identifier_str_mv Brambilla, María Irene; Porto, Guido Gustavo; High-income export destinations, quality and wages; Elsevier; Journal of International Economics; 98; 1-2016; 21-35
1873-0353
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0022199615001439
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jinteco.2015.09.004
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-nd/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.229304

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