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Human Capital and Wages in Exporting Firms

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  • Munch, Jakob R.

    ()
    (University of Copenhagen)

  • Skaksen, Jan Rose

    ()
    (Copenhagen Business School)

Abstract

This paper studies the link between a firm’s education level, export performance and wages of its workers. 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 firms with high export intensities pay higher wages. However, an interaction term between export intensity and skill intensity has a positive impact on wages and it absorbs the direct effect of the export intensity. That is, we find an export wage premium, but it accrues to workers in firms with high skill intensities.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2409.

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Length: 25 pages
Date of creation: Oct 2006
Date of revision:
Publication status: published in: Journal of International Economics, 2008, 75 (2), 363-372
Handle: RePEc:iza:izadps:dp2409

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Keywords: matched worker-firm data; exports; wages; human capital; rent sharing;

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References

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  1. Pedro S. Martins & Jim Jin, 2008. "Firm-Level Social Returns to Education," Working Papers, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research 9, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
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