Type
Article
Titre
Exports and labor costs: Evidence from a French Policy
Auteur(s)
MALGOUYRES Clément - Banque de France (Auteur)
MAYER Thierry - Département d'économie (Auteur)
Éditeur
DE : Springer
Volume
154
Numéro
3
Pages
429 - 454 p.
ISSN
16102878
DOI
10.1007/s10290-018-0320-x
Mots clés
Labor costs, Firm-level exports, Competitiveness
Résumé
EN
We investigate the role that labor costs hold in exporters’ performance. To do so, we exploit a large-scale French reform that granted most firms a tax credit proportional to the wagebill of their employees paid below a given threshold. This policy effectively translated into a cut in labor cost whose magnitude varies depending on firm-specific wage structures. We use the predicted treatment intensity based on pre-reform composition of the labor force as an instrument for the actual policy-induced firm-level change in labor costs. Although our point estimates are consistent with commonly estimated firm-level trade elasticities combined with reasonable labor shares in total costs, coefficients are found to be very noisy, suggesting lack of robust evidence of a causal effect of the policy. We discuss several potential explanations for our results as well as their implications.
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