Online exports and the skilled-unskilled wage gap
Principal Investigator(s): View help for Principal Investigator(s) Emmanuel Milet, University of Genev; Marcelo Olarreaga, University of Geneva and CEPR; Marcio Cruz, World Bank, UFPR
Version: View help for Version V1
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Project Citation:
Milet, Emmanuel, Olarreaga, Marcelo, and Cruz, Marcio. Online exports and the skilled-unskilled wage gap. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-04-19. https://doi.org/10.3886/E118982V1
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Summary:
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The development of the Internet is often seen as a source of demand for skilled workers and therefore a potential driver of the wage gap between skilled and unskilled workers. This paper focuses on the impact that international trade in online platforms has on the skilled-unskilled wage gap. Because online trade allows smaller firms with relatively more unskilled workers to access world markets, one can expect an expansion of online exports to reduce the wage gap. After correcting for potential endogeneity bias in a sample of 22 developing countries for which online trade and wage gap data can be matched, we find that a 1 percent increase in the share of online exports over GDP leads to a 0.01 percent decline in the skilled-unskilled wage gap.
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