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Wage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data

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  • TANAKA Ayumu

Abstract

This study examines wage premiums for exporters, domestically owned multinational enterprises (MNEs), and foreign-owned firms, using Japanese linked employer-employee data. In this study, I employ the Mincer wage equations to investigate the wage premiums. In addition to the standard regression method, I use the quantile regression (QR) technique to reveal the premium in each quantile of the wage distribution. Unlike previous studies, this study jointly examines the premiums for exporters, domestically owned MNEs, and foreign-owned firms, and shows that wage premiums for foreign firms exist, whereas for local exporters and domestically owned MNEs, they almost disappear, after controlling for plant and worker characteristics. The results from QRs reveal that the foreign wage premium is larger in the higher quantiles of the wage distribution. In contrast, the wage premiums for exporters and domestically owned MNEs are smaller and even negative in higher quantiles.

Suggested Citation

  • TANAKA Ayumu, 2015. "Wage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data," Discussion papers 15106, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15106
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    2. Kox, Henk L.M., 2022. "Linking the knowledge-capital model of foreign direct investment with national knowledge systems," EconStor Preprints 266495, ZBW - Leibniz Information Centre for Economics.
    3. Wenxiao Wang & Christopher Findlay & Shandre Thangavelu, 2021. "Trade, technology, and the labour market: impacts on wage inequality within countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 19-35, May.
    4. ITO Koji, 2017. "Wage Premium of Exporting Plants in Japan: Do plant and firm size matter?," Discussion papers 17115, Research Institute of Economy, Trade and Industry (RIETI).
    5. Alonso Alfaro Urena & Isabela Manelici & Jose P. Vasquez, 2021. "The Effects of Multinationals on Workers: Evidence from Costa Rican Microdata," Working Papers 285, Princeton University, Department of Economics, Center for Economic Policy Studies..
    6. Sarah Schroeder, 2020. "Exporters, Multinationals and Residual Wage Inequality: Evidence and Theory," CESifo Working Paper Series 8701, CESifo.

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