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Human Capital and Wages in Exporting Firms

Author

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  • Jakob Roland Munch

    (Department of Economics, University of Copenhagen)

  • Jan Rose Skaksen

    (Copenhagen Business School)

Abstract

This paper studies the link between a firms education level, export performance and wages of its workers. We argue that firms may escape intense competition in international markets by using high skilled workers to differentiate their products. This story is consistent with our empirical results. Using a very rich matched worker-firm longitudinal dataset we find that firms with high export intensities pay higher wages. However, an interaction term between export intensity and skill intensity has a positive impact on wages and it absorbs the direct effect of the export intensity. That is, we find an export wage premium, but it accrues to workers in firms with high skill intensities.

Suggested Citation

  • Jakob Roland Munch & Jan Rose Skaksen, 2006. "Human Capital and Wages in Exporting Firms," EPRU Working Paper Series 06-10, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:epruwp:06-10
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    References listed on IDEAS

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    More about this item

    Keywords

    exports; wages; human capital; rent sharing; matched worker- firm data;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • F10 - International Economics - - Trade - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General

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