ZHANG Mingzhi:The Impact of Trade Openness on Skill Premium:Theoretical Mechanism and China's Experience

Abstract：This paper uses the mandated wage regression to empirically estimate the impact and mechanism of trade openness on the wage of workers with different skill levels in China by the WIOD-SEA database.This paper found that tariff concession reduced domestic prices and accordingly raised the wage of medium-skilled workers while decreased the wage of low-skilled workers.Skill premium is also increased.Our estimation results remain significant after correcting the standard error bias.

Key words： Trade Openness    Skill Premium    Mandated Wage Regression

source:Finance & Trade Economics ,No.4,2015