Exporting Firms Do Not Pay Higher Wages, Ceteris Paribus. First Evidence from Linked Employer-Employee Data
28 Pages Posted: 7 Jul 2004
Date Written: June 2004
18 studies using data from 20 highly developed, developing, and less developed countries document that average wages in exporting firms are higher than in non-exporting firms from the same industry and region. The existence of these so-called exporter wage premia is one of the stylized facts found in the emerging literature on the microeconometrics of international trade. This paper uses a large and rich set of linked employer-employee data from Germany to demonstrate that these premia vanish when individual characteristics of the employees and of the work place are controlled for.
Keywords: exports, wages, exporter wage premia, linked employer-employee data, Germany
JEL Classification: F10, D21, L60
Suggested Citation: Suggested Citation