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Human capital and wages in exporting firms

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  • Munch, Jakob Roland
  • Skaksen, Jan Rose

Abstract

This paper studies the link between the education level of workers, export performance and wages. We argue that firms may escape intense competition in international markets by using high skilled workers to differentiate their products. This story is consistent with our empirical results. Using a very rich matched worker-firm longitudinal dataset, we find that there is a weak negative direct effect of exporting on wages, but an interaction term between export intensity and skill intensity has a positive impact on wages. That is, we find an export wage premium, but only in firms where the skill intensity is sufficiently high.

Suggested Citation

  • Munch, Jakob Roland & Skaksen, Jan Rose, 2008. "Human capital and wages in exporting firms," Journal of International Economics, Elsevier, vol. 75(2), pages 363-372, July.
    • Handle: RePEc:eee:inecon:v:75:y:2008:i:2:p:363-372
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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • F10 - International Economics - - Trade - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General

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