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Export Activity, Firm Size and Wage Structure: Evidence from Taiwanese Manufacturing Firms

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  • Meng-Wen Tsou
  • Jin-Tan Liu
  • Cliff J. Huang

Abstract

This study adopts a semiparametric smooth coefficient model to evaluate the export-wage premiums, firm size-wage premiums, and the wage gap between skilled and unskilled labor. Particular focus is placed upon widespread evidence indicating that pay levels in 'large' and 'export-oriented' firms are higher than in their 'small' and 'domestic-oriented' counterparts. Applying the firm-level data for Taiwanese manufacturing firms, we find a positive export-wage premium for skilled workers and a negative export-wage premium for unskilled workers. The hypothesis of a constant export premium across firm size is rejected. While most of the export-wage premiums for skilled labor can be attributed to the small and medium firms, the large exporting firms have a significant adverse effect on wages for unskilled labor. Moreover, our results suggest that the firm size-wage premiums for skilled workers are larger than those for unskilled workers. The wage gap between the two skill groups is also sensitive to size categories. Copyright 2006 East Asian Economic Association and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 20 (2006)
Issue (Month): 4 (December)
Pages: 333-354

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Handle: RePEc:bla:asiaec:v:20:y:2006:i:4:p:333-354

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Cited by:
  1. Vu, Van Huong, 2012. "Does export participation affect wages and employment quality? the case of Vietnamese SMEs," MPRA Paper 38696, University Library of Munich, Germany.
  2. Dahai Fu & Yanrui Wu, 2011. "Export Wage Premium in China's Manufacturing Sector: A Firm Level Analysis," Economics Discussion / Working Papers 11-22, The University of Western Australia, Department of Economics.
  3. Joachim Wagner, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," Working Paper Series in Economics 210, University of L√ľneburg, Institute of Economics.
  4. James E. Anderson, 2008. "Globalization and Income Distribution: A Specific Factors Continuum Approach," Boston College Working Papers in Economics 699, Boston College Department of Economics.
  5. Nielsen, Ingrid & Smyth, Russell, 2008. "Who bears the burden of employer compliance with social security contributions? Evidence from Chinese firm level data," China Economic Review, Elsevier, vol. 19(2), pages 230-244, June.
  6. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra-Firm Wage Dispersion Among Blue-Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, 09.

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