February 10, 2020

delta exporter wage premium in response to china shock in brazil

unit of analysis is the microregion (local labor market)

from Brazilian Statistical Agency (IBGE) economically integrated contiguous municipalities

with similar geographic/productive characteristics

instrumental variables approach

autor et. al 2016 and brummund and connolly 2019

instrument for brazil's trade with china (imports and exports)

using other countries' flows with china

underlying assumption

china shock due to changing internal conditions in china

dominance in certain trade markets/rising trade values common across countries

data from un comtrade

rais data for exporter wage premium

ratio of wages in exporting relative to domestic fi rms

regional capital market development

regional credit operations from brazilian central bank

firm patient capital recipiency

firm bndes contract


employee fi rm industry regional characteristics