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Higher wages in exporting firms: self-selection, export effect, or both? First evidence from German linked employer-employee data

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  • Schank, Thorsten
  • Schnabel, Claus
  • Wagner, Joachim

Abstract

While it is a stylized fact that exporting firms pay higher wages than non-exporting firms, the direction of the link between exporting and wages is less clear. Using a rich set of German linked employer-employee panel data we follow over time plants that start to export. We show that the exporter wage premium does already exist in the years before firms start to export, and that it does not increase in the following years. Higher wages in exporting firms are thus due to self-selection of more productive, better paying firms into export markets; they are not caused by export activities. -- Während es als stilisiertes Faktum gilt, dass exportierende Firmen höhere Löhne zahlen als nicht exportierende, ist die Richtung des Zusam-menhangs zwischen Exportieren und Löhnen weniger klar. Unter Verwendung eines großen verbundenen Arbeitgeber-Arbeitnehmer-Datensatzes für Deutschland verfolgen wir Betriebe, die anfangen zu exportieren, über die Zeit. Wir zeigen, dass der Exportlohnaufschlag bereits in den Jahren vor Aufnahme der Exporttätigkeit besteht und dass er in den Jahren danach nicht zunimmt. Höhere Löhne in exportierenden Firmen sind somit das Ergebnis einer Selbstselektion von produk-tiveren und besser zahlenden Firmen in Exportmärkte; sie werden nicht durch Exportaktivitäten verursacht.

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Bibliographic Info

Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 55.

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Date of creation: 2008
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Handle: RePEc:zbw:faulre:55

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Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/
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Keywords: exports; wages; exporter wage premium; Germany;

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References

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  1. 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.
  2. Ernst Fehr & Simon G�chter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(3), pages 159-181, Summer.
  3. The International Study Group on Exports and Productivity, . "Exports and Productivity – Comparable Evidence for 14 Countries," Discussion Papers 07/41, University of Nottingham, GEP.
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  5. Bernard, A., 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 30(1), pages 60-82, 01.
  7. Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2007. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Journal of International Economics, Elsevier, Elsevier, vol. 72(1), pages 52-74, May.
  8. Hartmut Egger & Udo Kreickemeier, 2007. "Firm Heterogeneity and the Labour Market Effects of Trade Liberalisation," CESifo Working Paper Series 2000, CESifo Group Munich.
  9. Munch, Jakob Roland & Skaksen, Jan Rose, 2008. "Human capital and wages in exporting firms," Journal of International Economics, Elsevier, Elsevier, vol. 75(2), pages 363-372, July.
  10. Wagner, Joachim, 2002. "The causal effects of exports on firm size and labor productivity: first evidence from a matching approach," Economics Letters, Elsevier, Elsevier, vol. 77(2), pages 287-292, October.
  11. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, American Economic Association, vol. 74(3), pages 433-44, June.
  12. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  13. repec:rus:hseeco:122439 is not listed on IDEAS
  14. Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Cited by:
  1. Joachim Wagner, 2008. "Exporte und Firmenerfolg: Welche Firmen profitieren wie vom internationalen Handel?," Working Paper Series in Economics, University of Lüneburg, Institute of Economics 81, University of Lüneburg, Institute of Economics.
  2. Alcala Agullo, Francisco & Hernández Martínez, Pedro Jesús, 2009. "Firms’ Main Market, Human Capital, and Wages," UMUFAE Economics Working Papers, DIGITUM. Universidad de Murcia 4102, DIGITUM. Universidad de Murcia.
  3. Achim Schmillen, 2011. "The Exporter Wage Premium Reconsidered - Destinations, Distances and Linked Employer-Employee Data," Working Papers, Bavarian Graduate Program in Economics (BGPE) 111, Bavarian Graduate Program in Economics (BGPE).
  4. Hernández, Pedro, 2012. "Is there a producer quality wage premium similar to the exporter wage premium?," MPRA Paper 41082, University Library of Munich, Germany.
  5. Michael Pflüger & Uwe Blien & Joachim Möller & Michael Moritz, 2013. "Literature Overview - Labor Market Effects of Trade and FDI – Recent Advances and Research Gaps," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(1), pages 86-116, January.

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