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Jel Classification:O14 

Working Paper
Minimum wages and firm employment: evidence from China

This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high ...
Globalization Institute Working Papers , Paper 173

Working Paper
Learning, Prices, and Firm Dynamics

We document new facts about the evolution of firm performance and prices in international markets, and propose a theory of firm dynamics emphasizing the interaction between learning about demand and quality choice to explain the observed patterns. Using data from the Portuguese manufacturing sector, we find that: (1) firms with longer spells of activity in export destinations tend to ship larger quantities at lower prices; (2) older exporters tend to use more expensive inputs; (3) revenue growth within destinations (conditional on initial size) tends to decline with market experience; and (4) ...
International Finance Discussion Papers , Paper 1193

Working Paper
Industrial Composition and Intergenerational Mobility

Using the National Longitudinal Surveys of Youth (NLSY), this article examines the influence of a region’s industrial composition on the educational attainment of children raised by parents who do not have college degrees. The NLSY’s geo-coded panel allows for precise measurements of the local industries that shaped the parents’ employment opportunities and the labor market that the children directly observed. For cohorts finishing school in the 1990s and early 2000s, concentrations of manufacturing are positively associated with both high school and college attainment. Concentrations ...
Working Papers (Old Series) , Paper 1533R

Working Paper
Digital Adoption, Automation, and Labor Markets in Developing and Emerging Economies

We document a strong negative link between self-employment and the rate of digital adoption by firms in developing and emerging economies. No link between digital adoption and the unemployment rate is found, however. To explain this evidence, we build a general equilibrium search-and-matching model with endogenous labor force participation, self-employment, endogenous firm entry, and information-and-communications technology adoption. The main finding is that changes in the cost of technology adoption per se cannot rationalize the evidence. Instead, changes in firms' barriers to entry ...
FRB Atlanta Working Paper , Paper 2019-22

Working Paper
Evolving comparative advantage, sectoral linkages, and structural change

I quantitatively examine the effects of location-and sector-specific productivity growth on structural change across countries from 1970-2011. The results shed new light on the ?hump shape" in industry's share in GDP across levels of development. There are two key features. First, otherwise identical changes in the composition of final demand translate differently into changes in the composition of value added because of systematic differences in sectoral linkages. Second, the mapping between sector-specific productivity and the composition of final demand systematically differs because of ...
Globalization Institute Working Papers , Paper 231

Working Paper
Industrial Composition and Intergenerational Mobility

For five decades, the share of adults employed in college-degree-intensive industries, such as health care and education, has been rising. Industries that provided employment for workers without degrees, especially manufacturing, have been reducing their payrolls. This economic transition could impact the probability of children obtaining higher levels of education than their parents achieved. In this analysis, measures of the local industrial composition from the Current Population Survey are merged with the National Longitudinal Surveys of Youth using the confidential geo-coded records. ...
Working Papers (Old Series) , Paper 1533

Report
The dual nature of trade: measuring its impact on imitation and growth

Imports of goods that embody foreign technology raise a country's output directly as inputs into production and indirectly through reverse-engineering of these goods, which contributes to domestic imitation and innovation. This paper first quantifies spillovers from high-technology imports from developed countries to domestic imitation and innovation in both developed and developing countries. It then considers the contribution of foreign and domestic innovation to real per capita GDP growth. ; International patent data for forty countries from 1970 to 1985 are used to create proxies for ...
Staff Reports , Paper 44

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