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Export Wage Premium in China's Manufacturing Sector: A Firm Level Analysis

  • Dahai Fu

    (Business School, University of Western Australia)

  • Yanrui Wu

    (Business School, University of Western Australia)

This paper investigates whether exporting firms in Chinese manufacturing sector pay higher average wages than non-exporting firms by analyzing a large firm-level dataset derived from the Chinese Industrial Census in 2004. Through rigorous exercises involving robust regressions, quantile regressions and nonparametric matching estimators, we find that the wage premium of exporting activities is not a prevailing phenomenon in China. It is highly associated with heterogeneous characteristics of firms, such as ownership, export-orientation and locations. Overall, exporters located in coastal regions but Guangdong province are more likely to pay higher average wages than nonexporters, while those producing in Guangdong on average offer a lower pay.

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File URL: http://www.business.uwa.edu.au/__data/assets/pdf_file/0008/1895336/11-22-Export-Wage-Premium-in-Chinas-Manufacturing-Sector-A-Firm-Level-Analysis.pdf
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Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 11-22.

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Length: 33 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:uwa:wpaper:11-22
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  1. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 489-530, 05.
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