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Multinational and exporter wage premia: evidence from southeastern Europe and a panel multiple-treatments approach

Author

Listed:
  • Peter H. Egger

    (CEPR
    CESifo
    WIFO
    ETH Zurich)

  • Pinar Kaynak Gunes

    (ETH Zurich)

  • Benedikt Zoller-Rydzek

    (ZHAW, School of Management and Law)

Abstract

We explore how the type of global market entry affects wage premia, classifying firms into four categories: domestic only, domestic exporters, non-exporting multinationals, and exporting multinational enterprises. Using firm-level panel data for Bosnia and Herzegovina, Croatia, and Slovenia for the years 2007–2017 and a multivariate endogenous treatment model based on the approach of Wooldridge (J Econom 68(1):115–132, 1995), we find that the multinational wage premia are mainly driven by the export status of multinational firms. Specifically, domestic exporters and exporting multinationals pay on average higher wages than non-exporting firms, whereas non-exporting multinationals tend to pay lower wages than domestic-only firms.

Suggested Citation

  • Peter H. Egger & Pinar Kaynak Gunes & Benedikt Zoller-Rydzek, 2024. "Multinational and exporter wage premia: evidence from southeastern Europe and a panel multiple-treatments approach," Empirical Economics, Springer, vol. 66(6), pages 2451-2470, June.
    • Handle: RePEc:spr:empeco:v:66:y:2024:i:6:d:10.1007_s00181-023-02535-2
    DOI: 10.1007/s00181-023-02535-2
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    More about this item

    Keywords

    Wage premium; Exporters; Multinational firms; Panel data; Endogenous treatments;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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