Working Paper: CEPR ID: DP10478
Authors: Juan Carluccio; Denis Fougre; Erwan Gautier
Abstract: We estimate the impact of international trade on wages using data for French manufacturing firms. We instrument firm-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has heterogeneous effects. The impact of trade on wages varies across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains associated with collective bargaining are similar across worker categories.
Keywords: Collective Bargaining; Exports; Firm-Level Wages; Offshoring
JEL Codes: E24; F16; J51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| exports (F10) | wages (J31) |
| offshoring (F23) | wages (J31) |
| exports (F10) | wages (higher elasticity for collective bargaining) (J31) |
| offshoring (F23) | wages (higher elasticity for collective bargaining) (J31) |
| collective bargaining (J52) | elasticity of wages with respect to exports (F16) |
| collective bargaining (J52) | elasticity of wages with respect to offshoring (J39) |
| international trade (F19) | wages (J31) |