Trade and Human Capital Accumulation : Evidence from U.S. Immigrants
This study provides empirical evidence that trade increases on-the-job human capital accumulation by estimating the effect of home country openness on estimated returns to home country experience of U.S. immigrants. The positive effect of trade on...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/03/7405842/trade-human-capital-accumulation-evidence-immigrants http://hdl.handle.net/10986/7164 |
| Summary: | This study provides empirical evidence
that trade increases on-the-job human capital accumulation
by estimating the effect of home country openness on
estimated returns to home country experience of U.S.
immigrants. The positive effect of trade on on-the-job human
capital accumulation remains significant when controlling
for GDP, educational attainment, and institutional quality.
It is not the result of self-selection, heterogeneity in
returns to experience, English-speaking origin, or cultural
background. The effect persists when restricting the sample
to non-OECD countries, thereby resolving the theoretical
ambiguity of whether trade increases or decreases
learning-by-doing. The role of trade in generating economic
growth is therefore likely to be more important than
generally considered. |
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