This paper examines the relationship between trade and job quality, using productivity and wage rate data for export and non-export activities in a sample of 60 countries across all income levels and 45 sectors spanning the whole economy over 1995-2019. First, the country-level analysis finds that workers involved in export activities are more productive and better paid than those in non-export activities. While the productivity premium for export activities is confirmed in low- and middle-income countries, there is no wage rate premium. Second, this study finds a positive relationship between exports and labor productivity at the country-sector level. Countries’ specialization in global value chains and sectors matters for the relationship between exports and job quality, with manufacturing, agriculture, and business services showing stronger associations. The link between exports and the wage rate is smaller than for productivity. Finally, productivity and wage rate growth decompositions shed light on underlying drivers of growth. Within export activities, productivity and wage increases were dominated by within-sector growth, although labor movement toward more productive sectors also matters in low- and middle-income countries.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced in a computer with the following specifications:
• OS: Windows 10 Enterprise, version 21H2
• Processor: IIntel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz, 2900 Mhz, 4 Core(s), 4 Logical Processor(s)
• Memory available: 16.7 GB
• Software version: Stata 18
~20 minute runtime
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All data is public and contained in the reproducibility package.
| Author | Affiliation | |
|---|---|---|
| Luis Aguilar Luna | World Bank | laguilar@colmex.mx |
| Deborah Winkler | World Bank | dwinkler2@worldbank.org |
This paper was developed for the project “Leveraging trade for more and better job opportunities in developing countries” and also serves as input to the project “Jobs and growth in developing countries” (both reports are forthcoming). The authors thank Sébastien Dessus, Aart Kraay, Maryla Maliszewska, Gaurav Nayyar, Martín Rama, and Shu Yu for very helpful suggestions and discussions. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the World Bank Group and its affiliated organizations, its Executive Directors or the governments they represent.
2024-05
| Location | Code |
|---|---|
| World | WLD |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Deborah Winkler | World Bank | dwinkler2@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
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