http://www.bis.org/cbhub/list/author/author_4489/index.rss Research hub papers by author Luca David Opromolla en http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201123.pdf Bank of Portugal Working papers by Luca David Opromolla Why Ex(Im)porters Pay More: Evidence from Matched Firm-Worker Panels 2011-09-23T06:21:59Z We investigate the relationship between exporting, importing, and wage premia using a rich matched employer-employee data set. We improve on the previous literature (i) by using a new methodology to quantify the contribution of an extensive set of worker- and rm-level observable and unobservable characteristics to the wage gap, and (ii) by controlling for the import as well as the export activity of the firm. These two innovations allow us to avoid large biases that characterized the previous literature. A robust result is that the hiring policy of exporters is quite different than the one of importers. While firm size and sales are, to different extents, important components of the wage gap both for exporters and importers, importers hire workers that are overwhelmingly more able than the average. Workers at exporting firms, on the contrary, are no different in terms of unobserved time-invariant characteristics.Our analysis provides a useful guidance for recent theories that aim at explaining participation both in export and import markets and at including non-neoclassical labor market features into trade models. Why Ex(Im)porters Pay More: Evidence from Matched Firm-Worker Panels 2011-09-23T06:21:59Z Abstract http://www.bportugal.pt/en-US/EstudosEconomicos/Publicacoes/Pages/BdPPublicationsResearchDetail.aspx?PublicationId=636 Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201123.pdf Luca David Opromolla Luca David Opromolla 2011-09 Bank of Portugal Working papers http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201125.pdf Bank of Portugal Working papers by Luca David Opromolla The Tip of the Iceberg: A Quantitative Framework for Estimating Trade Costs 2011-09-21T06:25:59Z International economics has overwhelmingly relied on Samuelson's (1954) assumption that trade costs are proportional to value. We develop a quantitative analytical framework that features both additive and multiplicative (iceberg) trade costs, building on a model of international trade with heterogeneous firms and demand heterogeneity. We structurally estimate the magnitude of additive trade costs, for every product and destination available in our firm-level data of Norwegian exporters. Identification is aided by the theoretical finding that the elasticity of demand to producer price is dampened, in absolute value, when prices are low, and this mechanism is magnified when additive trade costs are high. This magnification mechanism becomes useful in, the subsequent econometric analysis. Estimated additive trade costs are substantial. On average, additive costs are 33 percent, expressed relative to the median price. This leads us to reject the pure iceberg cost assumption. We assess the importance of these costs in shaping global trade flows. Our micro estimates of additive trade costs explain most of the geographical variation in aggregate trade. An implication of our work is that inferring trade costs from standard gravity models suffers from specification bias, since these models assume away the role of additive trade costs. The Tip of the Iceberg: A Quantitative Framework for Estimating Trade Costs 2011-09-21T06:25:59Z Abstract http://www.bportugal.pt/en-US/EstudosEconomicos/Publicacoes/Pages/BdPPublicationsResearchDetail.aspx?PublicationId=638 Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201125.pdf Luca David Opromolla Luca David Opromolla 2011-09 Bank of Portugal Working papers http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201104.pdf Bank of Portugal Working papers by Luca David Opromolla Managers' Mobility, Trade Status, and Wages 2011-04-14T06:23:00Z This paper investigates whether the arrival of managers with export experience, i.e. experience acquired through participation in the export activity of previous employers, is related to firms' international trade status and to what extent this relationship is of a causal nature. We construct a worker-firm matched panel dataset which enables us to track managers across different firms over time and observe firms' trading stance as well as a large set of workers' and firms' characteristics. Contrary to blue and white collars, we find that managers are paid a sizeable premium for export experience which has both a level and a trend component. Conditioning for the firm past trade status, we find that a one standard deviation increase in the firm's share of managers' with export experience corresponds to about 35% more chances of starting to export. The impact is stronger for larger firms and is roughly of the same order of magnitude of the firm productivity effect. On the contrary, export experience acquired by managers from previous employers positively affects the capacity to keep exporting in small firms only. To give a causality flavor to our findings, we use in a final step an IV strategy that mimics a random matching between managers with export experience and firms. IV estimations indicate that export experience matters even more for entry while it has no effect on exit. Managers' Mobility, Trade Status, and Wages 2011-04-14T06:23:00Z Abstract http://www.bportugal.pt/en-US/EstudosEconomicos/Publicacoes/Pages/BdPPublicationsResearchDetail.aspx?PublicationId=588 Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201104.pdf Luca David Opromolla Luca David Opromolla 2011-04 Bank of Portugal Working papers http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201002.pdf Bank of Portugal Working papers by Pedro Martins; Luca David Opromolla Exports, Imports and Wages:Evidence from Matched Firm-Worker-Product Panels 2010-02-19T12:43:00Z The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which are also typically treated as a composite good. However, we show in this paper that firm-level imports can actually be a wage determinant as important as exports. Furthermore, we also find significant differences in the relationship between trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate-) technology products tend to increase their salaries. Our analysis is based on unique data from Portugal, obtained by merging a matched firm-worker panel and a matched firm-transaction panel. Our data set follows the population of manufacturing firms and all their workers from 1995 to 2005 and allows for several control variables, including jobspell fixed effects. Exports, Imports and Wages:Evidence from Matched Firm-Worker-Product Panels 2010-02-19T12:43:00Z Abstract http://www.bportugal.pt/en-US/EstudosEconomicos/Publicacoes/Pages/BdPPublicationsResearchDetail.aspx?PublicationId=439 Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/wp201002.pdf Luca David Opromolla Pedro Martins Pedro Martins; Luca David Opromolla 2010-02 Bank of Portugal Working papers http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200820.pdf Bank of Portugal Working papers by Alfonso A. Irarrazabal, Luca David Opromolla A Theory of Entry and Exit into Exports Markets 2008-12-08T10:18:59Z A Theory of Entry and Exit into Exports Markets 2008-12-08T10:18:59Z Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200820.pdf Luca David Opromolla Alfonso A. Irarrazabal Alfonso A. Irarrazabal, Luca David Opromolla 2008-12 Bank of Portugal Working papers http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200817.pdf Bank of Portugal Working papers by João Amador, Luca David Opromolla Product and Destination Mix in Export Markets 2008-10-23T17:40:00Z Product and Destination Mix in Export Markets 2008-10-23T17:40:00Z Full text http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200817.pdf Luca David Opromolla João Amador João Amador, Luca David Opromolla 2008-10 Bank of Portugal Working papers D21 F1 L25