Full Citation

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

Citation Type: Working Paper

Publication Year: 2007

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Abstract: This study provides empirical evidence that trade increases on-the-job human capitalaccumulation by estimating the effect of home country openness on estimated returns tohome country experience of U.S. immigrants. The positive effect of trade on on-the-jobhuman capital accumulation remains significant when controlling for GDP, educationalattainment and institutional quality. It is not the result of self-selection, heterogeneity inreturns to experience, English speaking origin or cultural background. The effect persistswhen restricting the sample to non-OECD countries, thereby resolving the theoreticalambiguity whether trade increases or decreases learning-by-doing. The role of trade ingenerating economic growth is therefore likely to be more important than generallyconsidered.

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Authors: Domeland, Dorte

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Publication Number: 4144

Institution: World Bank

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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