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Exporting Firms Do Not Pay Higher Wages, Ceteris Paribus. First Evidence from Linked Employer-Employee Data

  • Schank, Thorsten

    ()

    (University of Mainz)

  • Schnabel, Claus

    ()

    (University of Erlangen-Nuremberg)

  • Wagner, Joachim

    ()

    (Leuphana University Lüneburg)

18 studies using data from 20 highly developed, developing, and less developed countries document that average wages in exporting firms are higher than in non-exporting firms from the same industry and region. The existence of these so-called exporter wage premia is one of the stylized facts found in the emerging literature on the microeconometrics of international trade. This paper uses a large and rich set of linked employer-employee data from Germany to demonstrate that these premia vanish when individual characteristics of the employees and of the work place are controlled for.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1185.

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Length: 28 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1185
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  1. Verhoogen, Eric A, 2007. "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," CEPR Discussion Papers 6385, C.E.P.R. Discussion Papers.
  2. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
  3. Jens Matthias Arnold & Katrin Hussinger, 2003. "Export Behavior and Firm productivity in German Manufacturing. A Firm-Level Analysis," Development Working Papers 184, Centro Studi Luca d\'Agliano, University of Milano.
  4. José C. Fariñas & Ana Martín-Marcos, 2007. "Exporting and Economic Performance: Firm-level Evidence of Spanish Manufacturing," The World Economy, Wiley Blackwell, vol. 30(4), pages 618-646, 04.
  5. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
  6. repec:dgr:uvatin:19990068 is not listed on IDEAS
  7. Wagner, Joachim, 2001. "The causal effects of exports on firm size and labor productivity: First evidence from a matching approach," HWWA Discussion Papers 155, Hamburg Institute of International Economics (HWWA).
  8. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  9. Jin-Tan Liu & Meng-Wen Tsou & James Hammitt, 1999. "Export activity and productivity: Evidence from the Taiwan electronics industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(4), pages 675-691, December.
  10. Bernard, A. & Wagner, J., 1996. "Exports and Success in German Manufacturing," Working papers 96-10, Massachusetts Institute of Technology (MIT), Department of Economics.
  11. Hansson, Pär & Lundin, Nan Nan, 2003. "Exports as an Indicator on or Promoter of Successful Swedish Manufacturing Firms in the 1990s," Working Paper Series 189, Trade Union Institute for Economic Research.
  12. A. Isgut, 2001. "What's Different about Exporters? Evidence from Colombian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 37(5), pages 57-82.
  13. Chin Hee Hahn, 2004. "Exporting and Performance of Plants: Evidence from Korean Manufacturing," NBER Working Papers 10208, National Bureau of Economic Research, Inc.
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