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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Thorsten Schank & Claus Schnabel & Joachim Wagner, 2006. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Working Paper Series in Economics 28, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:28
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    References listed on IDEAS

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    More about this item

    Keywords

    Export; wages; exporter wage premium; linked employer-employee data; Germany;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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