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The Review of Economics and Statistics Vol. 107 No. 5 2025

Exporting, Wage Profiles, and Human Capital: Evidence from Brazil

Xiao Ma1; Marc-Andreas Muendler2; Alejandro Nakab3

1 Peking University HSBC Business School · 2 UC San Diego, CESifo, and NBER · 3 Universidad Torcuato Di Tella

Abstract

Export activity shapes workers’ experience-wage profiles. Using employer-employee and customs data for Brazilian manufacturing, we document that workers’ experience-wage profiles are steeper at exporters than at non-exporters and, among exporters, steeper at exporters shipping to high-income destinations. We develop and quantify a model featuring worker-firm wage bargaining, export-market entry by multi-worker firms, and human capital accumulation by workers to interpret the data. Human capital growth can explain one-half of the differences in wage profiles between exporters and non-exporters. We show that increased human capital per worker can account for one-half of the overall gains in real income from trade openness.

DOI
10.1162/rest_a_01346
Volume
107
Issue
5
Pages
1371-1387
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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