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Who gets the wage premium from export: Top managers or employees?

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  • Kong, Dongmin
  • Kong, Gaowen
  • Pang, Lirang
  • Zhang, Jian

Abstract

This study seeks to identify the effect of export on the wages of top managers and employees. Using a manually collected dataset based on Chinese listed firms, we determine that export significantly enhances the average wages of firms. However, only top managers benefit from the wage premium, whereas employees do not. Consistent results based on instrumental variable and difference-in-difference matching approaches are obtained. We further show that employees with high educational level obtain significant wage premiums and top managers with overseas work experience earn higher compensations. This paper provides clear implications for firm management practices and regulators in emerging economies.

Suggested Citation

  • Kong, Dongmin & Kong, Gaowen & Pang, Lirang & Zhang, Jian, 2018. "Who gets the wage premium from export: Top managers or employees?," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 356-370.
    • Handle: RePEc:eee:reveco:v:58:y:2018:i:c:p:356-370
    DOI: 10.1016/j.iref.2018.04.006
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    3. Song, Tao & Cieslik, Andrzej, 2020. "The effects of free trade agreements on regional wages in China," Economic Systems, Elsevier, vol. 44(3).

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    More about this item

    Keywords

    Export; Compensation; Wage; Human capital; China;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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