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

54 Pages Posted: 20 Apr 2016

Date Written: March 1, 2007

Abstract

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.

Keywords: Economic Theory & Research, Country Strategy & Performance, Labor Markets, Population Policies, Inequality

Suggested Citation

Domeland, Dorte, Trade and Human Capital Accumulation: Evidence from U.S. Immigrants (March 1, 2007). World Bank Policy Research Working Paper No. 4144, Available at SSRN: https://ssrn.com/abstract=964806

Dorte Domeland (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
86
Abstract Views
804
Rank
527,956
PlumX Metrics