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Online exports and the wage gap

Online exports and the wage gap
The development of the Internet is often
seen as a source of demand for skilled workers and therefore
a potential driver of the wage gap between skilled and
unskilled workers. This paper focuses on the impact that
international trade in online platforms has on the wage gap.
Because online trade allows smaller firms with relatively
more unskilled workers to access world markets it can be
expected a priori that an expansion of online exports
reduces the wage gap. After correcting for potential
endogeneity bias in a sample of 22 developing countries for
which online trade and wage gap data can be matched, the
study finds that a 1 percent increase in the share of online
exports over GDP leads to a 0.01 percent decline in the wage gap.
Source: The World Bank – Private sector development