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Trade Liberalization And Skill Premium

Posted on:2020-04-01Degree:MasterType:Thesis
Country:ChinaCandidate:T GuFull Text:PDF
GTID:2417330572966932Subject:Regional Economics
Abstract/Summary:PDF Full Text Request
Economic globalization is the fundamental trend of today's world economic development.Trade liberalization is the main content of economic globalization and the purpose of the World Trade Organization(WTO),Along with the gradual deepening of the process of trade liberalization,China's economy has achieved rapid development and has become the world's second largest economy.Foreign trade ranks among the top in world trade.In this process,China's industrial industry plays a vital role in promoting economic development.However,with the rapid development of the industrial economy,the wage gap between the industrial sectors is getting bigger and bigger,Is the increase in the wage gap between industries related to the deepening of trade liberalization?Does trade liberalization promote the expansion of the wage gap or inhibit the expansion of the wage gap?Therefore,this paper studies the relationship between trade liberalization and the skill premium.This paper sorts out the tariff level and import and export trade data of China's sub-industrial industry from 2000 to 2016 to measure the trade liberalization index.To measure the skill premium index,the high and low skilled labor wages of various industries from 2000 to 2009 were compiled from the perspective of education level,the wages of high and low skilled labor in various industries from 2000 to 2016 were compiled from the perspective of posts.It was found that the trade liberalization of various industries gradually deepened,The skill premium level is also increasing.This paper analyzes the impact of trade liberalization on skill premium from two aspects:theoretical analysis and empirical measurement.In theory,trade liberalization affects the skill premium through the complementarity effect of capital skills,the substitution effect of high and low skill labor,the effect of international competition,and the impact of technology spillover effects on the allocation structure of factors.With the deepening of trade liberalization,the decline of tariffs,the increasing import of capital goods,the deepening of capital goods,and the division of capital,it is necessary to hire more highly skilled labor to match,so that low-skilled labor is reduced.The change in the domestic factor structure and the increase in the demand for highly skilled labor will inevitably lead to an increase in the remuneration of highly skilled labor,which in turn will increase the skill premium.And analyzed by mathematical model.In the empirical part,firstly,using the panel data of China's industrial sub-sectors from 2000 to 2009,the measurement of the whole sample data is carried out to analyze the impact of trade liberalization and factor allocation structure on the skill premium.The empirical results show that:with the tariff level Lowering,the degree of trade liberalization is deepening,capital goods imports are increasing,which requires more highly skilled labor to match,high-skilled labor increases,and skill premiums rise.Then,according to the factor intensity,the industry is divided into two types:capital-intensive and labor-intensive,and the regression is made respectively.The trade liberalization promotes the increase of the skill premium.Finally,a stability test is conducted for the surrogate variables of skill premium and trade liberalization.For the alternative variable of skill premium,the empirical analysis of panel data from the industrial segment of 2000-2016 can also lead to an increase in the skill premium as the tariff level declines.For the alternative indicators of trade liberalization,the panel data of 2000-2009 and 2000-2016 are tested empirically,and the following conclusions were obtained:Import penetration significantly promotes the rise of skill premium,and the increase of export penetration inhibits the rise of skill premium.The total volume of import and export significantly contribute to the rise in the skill premium.
Keywords/Search Tags:Trade Liberalization, Tariff, Factor Allocation Structure, Skill Premium
PDF Full Text Request
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