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Do exporters really pay higher wages? First evidence from German linked employer-employee data

  • Thorsten Schank

    ()

    (Institute of Economics, Friedrich-Alexander-University Erlangen-Nürnberg)

  • Claus Schnabel

    ()

    (Institute of Economics, Friedrich-Alexander-University Erlangen-Nürnberg)

  • Joachim Wagner

    ()

    (Institute of Economics, University of Lüneburg)

Many plant-level studies find that average wages in exporting firms are higher than in non-exporting firms from the same industry and region. This paper uses a large set of linked employer-employee data from Germany to analyze this exporter wage premium. We show that the wage differential becomes smaller but does not completely vanish when observable and unobservable characteristics of the employees and of the work place are controlled for. For example, blue-collar (white-collar) employees working in a plant with an export-sales ratio of 60 percent earn about 1.8 (0.9) percent more than similar employees in otherwise identical non-exporting plants.

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Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 28.

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Length: 39 pages
Date of creation: 21 Jun 2006
Date of revision:
Handle: RePEc:lue:wpaper:28
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