Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5100858 | Journal of International Economics | 2017 | 38 Pages |
Abstract
Using Chinese firm-level production data, this paper developed a Mincer (1974)-type approach to investigate the impact of input trade liberalization on firms' wage inequality between skilled and unskilled workers (or skill premium). When controlling for product-market tariffs in a firm's industry, we find robust evidence that reduced input tariffs in a firm's industry are associated with a higher skill premium at firms with more skilled workforces. This effect is more pronounced at ordinary (non-processing) firms. We also provide evidence that reduced input tariffs in a firm's industry are associated with higher value added and profits at firms with more skilled workforces.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Bo Chen, Miaojie Yu, Zhihao Yu,