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Export wage premium in China's manufacturing sector: A firm level analysis

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  • Fu, Dahai
  • Wu, Yanrui

Abstract

This paper investigates whether exporting firms in Chinese manufacturing sector pay higher average wages than non-exporting firms by analyzing a large firm-level dataset derived from the Chinese Enterprise Census in 2004. Through rigorous exercises involving robust regressions, quantile regressions and nonparametric matching methods, we find that the wage premium of exporting activities is not a prevailing phenomenon in China. It is related to the heterogeneous characteristics of the firms such as ownership, export-orientation and locations. Overall, exporters located in coastal regions but Guangdong province are more likely to pay higher average wages than nonexporters, while those producing in Guangdong on average offer a lower pay.

Suggested Citation

  • Fu, Dahai & Wu, Yanrui, 2013. "Export wage premium in China's manufacturing sector: A firm level analysis," China Economic Review, Elsevier, vol. 26(C), pages 182-196.
  • Handle: RePEc:eee:chieco:v:26:y:2013:i:c:p:182-196
    DOI: 10.1016/j.chieco.2012.05.009
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    Cited by:

    1. Diana Alexandra Gonçalves Costa & Ana Teresa Cunha de Pinho Tavares Lehmann, 2015. "Performance Differences between Exporters and Non-Exporters: the Case of Portugal," FEP Working Papers 569, Universidade do Porto, Faculdade de Economia do Porto.
    2. Heather D Gibson & Georgia Pavlou, 2017. "Exporting and performance: evidence from Greek firms," Working Papers 228, Bank of Greece.
    3. repec:eee:chieco:v:46:y:2017:i:c:p:97-109 is not listed on IDEAS
    4. Marianne Matthee & Neil Rankin & Carli Bezuidenhout, 2017. "Labour demand and the distribution of wages in South African manufacturing exporters," WIDER Working Paper Series 011, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Export; Wage premium; Manufacturing; China;

    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
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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