Services Trade and Labour Market Outcomes: Evidence from Italian Firms

Abstract

The paper investigates the relationship between services trade performance and employment characteristics in Italian firms. Our analysis is at the micro level and descriptive in nature. We merge micro data on services trade transactions with employment and wage variables at the level of the firm. We find that firms engaged in services trade tend to employ a larger share of managers and white collars and to pay higher average wages. They also exhibit systematically smaller shares of blue collars in their employment structure. These patterns hold qualitatively across all main sectors of firms' affiliation and across sectors of traded services. We find a strong and positive association between services exports and/or imports and total employment. Regression analysis confirms this last finding and shows it is robust to controlling for various confounding heterogeneity.

Services trade and labour market outcomes

“…Firm controls are age, goods exports and log capital intensity. Source: (Bamieh, Bripi, & Fiorini, 2020). Note: *** p<0.01, ** p<0.05, * p<0.1, t-statistics reported in parentheses.…”

“…Trade: annual (Brazil, Slovenia, Sweden, United Kingdom, Viet Nam), quarterly (Italy); Employment: annual (Sweden, United Kingdom, Viet Nam); Wages: annual and hourly (Brazil); average monthly gross (Italy); annual and hourly (Slovenia); annual, FTE (Sweden); annual, weekly and hourly (United Kingdom); hourly (Viet Nam). Sources: (Bamieh, Bripi, & Fiorini, 2020), (Benz & Lassmann, forthcoming), (Jaax & Johannesson, 2019), (Lassmann & Spinelli, forthcoming)and (Nordås, Lodefalk, & Tang, 2019).…”

“…Slovenia was excluded because the analysis relies on manufacturing trade. Sources: Own calculations; (Bamieh, Bripi, & Fiorini, 2020); (Benz & Lassmann, forthcoming); (Eppinger, 2019); (Jaax & Johannesson, 2019); (Lassmann & Spinelli, forthcoming).…”

“…The datasets used for the analysis of employer data for Italy (Bamieh, Bripi, & Fiorini, 2020) stem from the Transazioni Trimestrali Non Finanziarie (TTN-DR) dataset of the Bank of Italy. The TTN-DR survey offers quarterly data on services import and export transactions together with the product traded (EBOPS), the industry (SIC code) and sampling weights from 2008-2017.…”

“…Distribution of employment for traders and non-traders: Example of ItalySource:(Bamieh, Bripi, & Fiorini, 2020).…”