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Exporting and Female Labor Market Outcomes in Georgia

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  • Hollweg,Claire Honore
  • Ong Lopez,Anne Beline Chua

Abstract

Using firm-level data for Georgia, the paper estimates the quasi-elasticity of employment andwages with respect to the share of exports in total sales, to explore whether changes in the structure of sales(exporting versus selling to the domestic market) matter for labor market outcomes. The methodology uses exogenousfluctuations in exchange rates combined with firms' initial exposure to various markets as instrumentalvariables to identify a causal effect. The results differentiate employment levels and average wages by genderand consider whether export destination or the competiveness of economies matters for the magnitude of this elasticity.The data are from the National Statistics Office of Georgia Statistics Survey of Enterprises merged with customs datafor 2006-17. The instrumental variables regression results show that the act of exporting improves female employmentbut reduces overall average wages and female wages. Increasing exports to the European Union as well ashigh-income countries drives this positive result for female employment, whereas exporting to upper-middle-incomecountries is found to have a negative relationship with female employment.

Suggested Citation

  • Hollweg,Claire Honore & Ong Lopez,Anne Beline Chua, 2020. "Exporting and Female Labor Market Outcomes in Georgia," Policy Research Working Paper Series 9432, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9432
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    References listed on IDEAS

    as
    1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 903-947.
    2. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    3. Andrew B. Bernard & J. Bradford Jensen, 1995. "Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995 Micr), pages 67-119.
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