The Effects of Trade Participation on Labor Productivity, Wages and Female Employment: Evidence from Egyptian Manufacturing Firms by Yasmine Kamal
This articles researches effects of firm participation in international trade on its labour productivity, wages and female employment.
The author takes Egyptian firms for the analysis. Judging by current scientific literature, these firms show a weak connection between trade and labour market, so the study will contribute by deepening the research of these linkages by investigating wage differences between trading and non-trading firms and also paying attention to the issue of gender wage gap.
The author uses data from the Enterprise Surveys Database for years 2013, 2016 and 2020. This database is composed of a representative sample of firms in the non-agricultural formal private sector of a country.
Pooled ordinary least squares is the key method for estimations. The author estimate three different models to capture different aspects: a model for labour productivity, a model for average wages and a model for female employment share. These three parameters are the dependent variables in respective equations. The independent variables are the export and import dummies as well as control variables like real capital per worker, foreign ownership or firm age. Additionally, separate models are estimated where exporter and importer dummies are interacted with the technological intensity of the sector.
The following results are obtained. Firstly, both exporting and importing companies pay higher wages to their employees. The difference is present in all sectors and is especially high for importers in medium-high and high technology sectors. The reason for such differences are economies of scale and superior productivity of trading firms. Secondly, the gender gap is found to be lower, although it still exists. The reason for it can be higher general productivity of the firm which helps to pay more equitable wages to employees. Another reason is a lesser ability of the firm to use inefficient discriminatory practices when they face foreign competition. Another point is that female labour share is larger in exporting firms, than in importing ones.
Kamal, Yasmine. "The Effects of Trade Participation on Labor Productivity, Wages and Female Employment." Journal of Economic Integration 39.1 (2024): 151-177.
