Title: Exporting behavior and labor share in Chinese manufacturing industries: A semiparametric approach
Authors: Jinjing Tian - Dongbei University of Finance and Economics (China) [presenting]
Abstract: The purpose is to examine the relationship between exports and labor share in Chinese manufacturing industries, the most tradable sector in the economy. While most studies focus on the effect of trading with developing countries on domestic labor markets and/or labor share in developed economies, few studies examine its impact on labor in developing countries, such as China, the world's largest export economy. By using firm-level data in Chinese manufacturing industries and allowing for functional coefficients to take into account the heterogeneity of exporting behavior, we find that exports significantly decline labor's share of income neutrally through itself and non-neutrally through the channels of firms' capital intensity, technological progress, and monopoly power.