Munich Personal RePEc Archive

Learning by Exporting and Wage Profiles: New Evidence from Brazil

Ma, Xiao and Muendler, Marc-Andreas and Nakab, Alejandro (2020): Learning by Exporting and Wage Profiles: New Evidence from Brazil.

[img]
Preview
PDF
MPRA_paper_109497.pdf

Download (1MB) | Preview

Abstract

Export activity shapes workers’ experience-wage profiles. Using detailed Brazilian manufacturing employer-employee and customs data, we document that workers’ experience-wage profiles are steeper at exporters than at non-exporters. Aside from self-selection of more capable firms into exporting, we show that workers’ experience-wage profiles are steeper when firms export to high-income destinations. We then develop and quantify a model with export market entry, wage renegotiations, and human capital accumulation to interpret the data and perform counterfactual experiments. We find that human capital growth can explain roughly 40% of differences in wage profiles between exporters and non-exporters as well as the gains in experience returns after entry into high-income destinations. We also show that increased human capital per worker can account for one-half of the overall gains in real income from trade openness. In slowing human capital accumulation, trade liberalization can induce welfare losses if the trade partners are low-income destinations.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.