The effect of trade on earnings--evidence from Swedish micro data |
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| Authors: | Edin, Per-Anders Fredriksson, Peter Lundborg, Per |
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| Affiliation: | * IFAU, NBER, and Department of Economics, Uppsala University; e-mail: per-anders.edin{at}nek.uu.se
!["{dagger}"]("/math/dagger.gif") IFAU and Department of Economics, Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden; e-mail: peter.fredriksson{at}nek.uu.se
!["{ddagger}"]("/math/Dagger.gif") Trade Union Institute for Economic Research and Gothenburg University; e-mail: p.lundborg{at}fief.se |
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| Abstract: | Using a large longitudinal data set, we study the effects ofincreased trade on earnings in the Swedish labor market. Earningsrespond significantly to changes in industry sales, whethergenerated by domestic market forces or international trade:Swedish exports (imports) raise (lower) annual earnings, butchanges in trade affect earnings just as any other shift inmarket conditions. We also examine whether the effects of tradevary by skill. We do not find systematic differences in theeffects of trade across the skill distribution. |
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