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Is there a producer quality wage premium similar to the exporter wage premium?

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  • Hernández, Pedro

Abstract

Exporter wage premium has been widely studied in the literature on international trade. The aim of this paper is analyze whether there is also a producer quality wage premium at firm level, and if so, analyze whether its origin is similar to the exporter wage premium. In other words, I test whether firms that increase their product quality become more productive and pay higher wages (as with the learning by exporting hypothesis, we can speak of learning by producing quality), or, in contrast, more-productive firms with higher wages opt to increase product quality because their higher productivity means these kinds of decisions and investments can be taken with more guarantees (self-selection hypothesis).

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41082.

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Date of creation: 06 Sep 2012
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Handle: RePEc:pra:mprapa:41082

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Keywords: Wage differentials; International trade; Exports; Product quality;

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  1. Verhoogen, Eric A., 2007. "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6385, C.E.P.R. Discussion Papers.
  2. Maria Guadalupe, 2007. "Product Market Competition, Returns to Skill, and Wage Inequality," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 25, pages 439-474.
  3. Paula Bustos, 2011. "The Impact of Trade Liberalization on Skill Upgrading Evidence from Argentina," Working Papers 559, Barcelona Graduate School of Economics.
  4. Kugler, M., Verhoogen, E.A., 2008. "Product Quality at the Plant Level: Plant Size, Exports, Output Prices and Input Prices in Colombia," Working Papers, Wilfrid Laurier University, Department of Economics eg0058, Wilfrid Laurier University, Department of Economics, revised Feb 2008.
  5. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2011. "The Empirics of Firm Heterogeneity and International Trade," CEP Discussion Papers dp1084, Centre for Economic Performance, LSE.
  6. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2009. "Dealing with limited overlap in estimation of average treatment effects," Biometrika, Biometrika Trust, Biometrika Trust, vol. 96(1), pages 187-199.
  7. Juan A. Máñez-Castillejo & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2010. "Does Firm Size Affect Self-selection and Learning-by-Exporting?," The World Economy, Wiley Blackwell, vol. 33(3), pages 315-346, 03.
  8. Wagner, Joachim, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," IZA Discussion Papers 5916, Institute for the Study of Labor (IZA).
  9. Miguel Manjón & Juan Máñez & María Rochina-Barrachina & Juan Sanchis-Llopis, 2013. "Reconsidering learning by exporting," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(1), pages 5-22, March.
  10. Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2008. "Higher wages in exporting firms: self-selection, export effect, or both? First evidence from German linked employer-employee data," Discussion Papers 55, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  11. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3381, C.E.P.R. Discussion Papers.
  12. Bernard, A.B. & Jensen, J.B., 1994. "Exporters, Skill Upgrading, and the Wage Gap," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 94-30, Massachusetts Institute of Technology (MIT), Department of Economics.
  13. Walter Y. Oi & Todd L. Idson, 1999. "Workers Are More Productive in Large Firms," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 104-108, May.
  14. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, Elsevier, vol. 57(2), pages 397-422, August.
  15. Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 144(4), pages 660-694, December.
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