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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).

Suggested Citation

  • Hernández, Pedro, 2012. "Is there a producer quality wage premium similar to the exporter wage premium?," MPRA Paper 41082, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41082
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    References listed on IDEAS

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    More about this item

    Keywords

    Wage differentials; International trade; Exports; Product quality;
    All these keywords.

    JEL classification:

    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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