Merchandise Exports and Job Quality, Evidence From the States

Abstract

This article examines the relationship between state exports and job quality across the 50 American states. An occupational distribution index is calculated and used as a proxy for state job quality. An 8-year data panel is used to estimate the impacts of exports and several control variables on the magnitude of the occupational distribution index. The article finds a nonlinear relationship between exports and job quality. Beyond some level, further increases in exports seem to have a negative impact on state job quality. Cursory attention is paid to state-by-state trends in the occupational distribution index. Secondary findings based on the model provide further insight into economic development strategies.