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Trade and Human Capital Accumulation - Evidence from U.S. Immigrants

Author:
Dorte Domeland  


Issue Date:
2007


Abstract(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 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.


Page:
54


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