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Why Do Exporters and Multinational Firms Pay Higher Wages?:Evidence from Japanese Linked Employer–Employee Data

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  • Ayumu Tanaka

Abstract

This study investigates the reasons why exporters, multinational enterprises (MNEs), and foreign-owned rms pay higher wages, using Japanese linked employer{employee data. It jointly examines the premiums for exporters, domestically owned MNEs, and foreign-owned rms and shows that observable plant and worker characteristics as well as region and industry xed e ects can account for almost all wage premiums of local exporters and domestically owned MNEs, whereas they cannot fully account for the wage premium for foreign rms. The results from quantile regressions reveal that the residual foreign wage premium is larger in the higher quantiles of the wage distribution.

Suggested Citation

  • Ayumu Tanaka, 2018. "Why Do Exporters and Multinational Firms Pay Higher Wages?:Evidence from Japanese Linked Employer–Employee Data," Discussion papers e-17-013, Graduate School of Economics , Kyoto University.
    • Handle: RePEc:kue:epaper:e-17-013
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    Cited by:

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    2. Fukao, Kyoji & Perugini, Cristiano & Pompei, Fabrizio, 2022. "Labour market regimes, technology and rent-sharing in Japan," Economic Modelling, Elsevier, vol. 112(C).
    3. Kyoji Fukao & Cristiano Perugini & Fabrizio Pompei, 2023. "Non‐standard Employment and Rent‐sharing," Economica, London School of Economics and Political Science, vol. 90(357), pages 178-211, January.

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    More about this item

    Keywords

    wage premium; quantile regression; exporter; multinational enterprises; foreign-owned fiems;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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