Exports and Labor Skills: The Role of Training

Blyde, Juan (2016): Exports and Labor Skills: The Role of Training.

Abstract

An increasing number of analyses show that firms that are engaged in international trade have superior labor capabilities than their counterparts serving only the domestic market. One way to improve labor skills is by training current employees. There is, however, no empirical evidence showing how the exports of a firm respond to training programs. Using firm level data from Chile this study examines the impact of training employees on the firm’s export status. Based on a matching difference-in-differences estimator the results show that training employees can substantially increase the probability of becoming an exporter. Additional results provide details on how the effects differ by labor type, by the intensity of the labor training and whether there are cumulative effects over time. The analysis also sheds light on factors that complement training. All these issues are important to assess under what conditions labor training programs might work best with respect to trade outcomes

• Item Type: MPRA Paper
• Language: English
• Keywords: Exports, training, skills
• Subjects: F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

References

Albert, C., García-Serrano, C., Hernanz, V., 2010. “On-the-job training in Europe: Determinants and wage returns.” International Labour Review 149 (3), 315–341

Alvarez, Roberto, and Ricardo López. 2005. “Exporting and Performance: Evidence from Chilean Plants,” Canadian Journal of Economics 38, 4: 1385–1400

Arulampalam, W., Booth, A. L., Bryan, M. L., 2004. “Training in Europe,” Journal of the European Economic Association 2 (2-3), 346–360

Asplund, R., 2005. “The provision and effects of company training: A brief review of the literature,” Nordic Journal of Political Economy 31, 47–73.

Bassanini, A., Booth, A. L., Brunello, G., De Paola, M., Leuven, E., 2005. “Workplace training in Europe,” IZA Discussion Papers (1640).

Bernard, A. and B. Jensen, 1999, “Exceptional Exporter Performance: Cause, Effect, or Both?," Journal of International Economics, 47

Bloom, N., K. Manova, S. Sun, J. Van Reenen and Z. Yu, 2016, “Managing Trade: Evidence from China and the US,” Unpublished document.

Brambilla, I., D. Lederman and G. Porto, 2012, “Exports, Export Destinations, and Skills,” American Economic Review, 102(7)

Brambilla, I., D. Lederman and G. Porto, 2015, “Exporting Firms and the Demand for Skilled Tasks,” Unpublished document.

Brunello, G., 2001. “On the complementarity between education and training in Europe,” IZA Discussion Papers No. 309.

Cafaggi, F., R. Macedo, L. Swensson, T. Andreotti, C. Piterman, L. de Almeida, and T. Alves. 2012. “Accessing the Global Value Chain in a Changing Institutional Environment: Comparing Aeronautics and Coffee.” Inter-American Development Bank Working Paper No. 370. Washington, DC

De Loecker, Jan (2011) “Product Differentiation, Multiproduct Firms, and Estimating The Impact Of Trade Liberalization On Productivity,” Econometrica, Vol. 79, No. 5 (September, 2011), 1407–1451

Dearden, L., H. Reed and J. Van Reenen, 2006, “The Impact of Training on Productivity and Wages: Evidence from British Panel Data,” Oxford Bulleting of Economics and Statistics, 68(4).

Eslava, M. J. Haltiwanger, A. Kugler and M. Kugler, 2013, “Trade and Market Selection: Evidence from Manufacturing Plants in Colombia,” Review of Economic Dynamics, 16(1)

Fernandes, Ana, 2007, “Trade Policy, Trade Volumes and Plant-level Productivity in Colombian Manufacturing Industries,” Journal of International Economics, Elsevier, vol. 71(1),

Flores-Lima, R., C. González-Velosa and D. Rosas-Shady, 2014, “Cinco Hechos sobre la Capacitación en Firma en América Latina y el Caribe,” Banco Interamericano de Desarrollo, Washington DC.

Fujita, M. 2011. “Value Chain Dynamics and Local Supplier’s Capability Building: An Analysis of the Vietnamese Motorcycle Industry,” In M. Kawakami and T. Sturgeon (eds.), The Dynamics of Local Learning in Global Value Chains: Experiences from East Asia. Palgrave Macmillan, IDE-Jetro

Gereffi, G. 1999. “International Trade and Industrial Upgrading in the Apparel Commodity Chain,” Journal of International Economics 48, 1

Giordano, M. and L. Opromolla, 2014, “Managers' mobility, trade performance, and wages," Journal of International Economics, Elsevier, vol. 94(1)

Hansson, B., 2008. “Job-related training and benefits for individuals: A review of evidence and explanations,” OECD Education Working Papers (19).

Kawakami, M. 2011. “Inter-firm Dynamics in Notebook PC Value Chains and the Rise of Taiwanese Original Design Manufacturing Firms,” In M. Kawakami and T. Sturgeon (eds.), The Dynamics of Local Learning in Global Value Chains: Experiences from East Asia. Palgrave Macmillan, IDE-Jetro

Konings, J. and S., Vanormelingen, 2015, “The Impact of Training on Productivity and Wages: Firm Level Evidence,” The Review of Economic and Statistics, 97 (2)

Lileeva, Alla, and Daniel Trefler. 2010.“Improved Access to Foreign Markets Raises Plant level Productivity For Some Plants,” Quarterly Journal of Economics 125(3): 1051–99

Matsuyama, Kiminori, 2007, “Beyond Icebergs: Towards a Theory of Biased Globalization,” Review of Economic Studies 74(1)

Oosterbeek, H., 1998 “Unravelling supply and demand factors in work-related training,” Oxford Ec 50, 266–283

Pavcnik, Nina, 2002, “Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," Review of Economic Studies, 69(1)

Pischke, J.-S., 2001. “Continuous training in Germany,” Journal of Population Economics 14 (3), 523–548.

Steffes, S., and J. Warnke, 2014 “New Evidence on the Determinants of Firm-based Training,” Unpublished document.

Topalova, P., y A. Khandelwal, 2011. “Trade Liberalization and Firm Productivity: The Case of India,” The Review of Economics and Statistics, 93(3)

Trefler, Daniel, 2004, “The Long and Short of the Canada-U. S. Free Trade Agreement,” American Economic Review, American Economic Association, 94(4)

Verhoogen, Eric A., 2008, “Trade, Quality Upgrading, and Wage Inequality in the Mexican manufacturing Sector,” Quarterly Journal of Economics 123(2)

Zwick, Thomas, 2006, “The Impact of Training Intensity on Establishment Productivity,” Industrial Relations, 45