Workers’ Participation in Training and Import Competition: Evidence from the USA

Kosteas, Vasilios D.

doi:10.1111/twec.12403

Cited by 2 publications

(2 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…What little empirical work exists on training and trade comprises a few recent papers that find a link between rise in imports and training in the manufacturing sector Kosteas (2017). finds US workers in industries with rising import penetration were less likely to enroll in career advancement training Hogrefe and Wrona (2015).…”

mentioning

confidence: 99%

Trade and Worker Deskilling

Costa

Dhingra

Machin

2019

View full text Add to dashboard Cite

This paper presents new evidence on international trade and worker outcomes. It examines a big world event that produced an unprecedentedly large shock to the UK exchange rate. In the 24 hours in June 2016 during which the UK electorate unexpectedly voted to leave the European Union, the value of sterling plummeted. It recorded the biggest depreciation that has occurred in any of the world's four major currencies since the collapse of Bretton Woods. Exploiting this variation, the paper studies the impact of trade on wages and worker training. Wages and training fell for workers employed in sectors where the intermediate import price rose by more as a consequence of the sterling depreciation. Calibrating the estimated wage elasticity with respect to intermediate import prices to theory uncovers evidence of a production complementarity between workers and intermediate imports. This provides new direct evidence that, in the modern world of global value chains, it is changes in the cost of intermediate imports that act as a driver of the impact of globalization on worker welfare. The episode studied and the findings add to widely expressed, growing concerns about poor productivity performance relating to skills and to patterns of real wage stagnation that are plaguing contemporary labour markets.

show abstract

mentioning

confidence: 99%

Trade and Worker Deskilling

Costa

Dhingra

Machin

2019

View full text Add to dashboard Cite

show abstract

“…10 Second, as trade policy in 8 What little empirical work exists on training and trade comprises a few recent papers that find a link between rise in imports and training in the manufacturing sector. Kosteas (2017) finds US workers in industries with rising import penetration were less likely to enroll in career advancement training. Hogrefe and Wrona (2015) finds instead that workers in industries with rising imports from low-income countries were more likely to enrol in training in Germany, where these investments have risen during the crisis period (unlike many other advanced countries).…”

Section: Introductionmentioning

confidence: 99%