TY - CHAP

T1 - Higher Wages in Exporting Firms

T2 - Self-selection, Export Effect, or Both? First Evidence from Linked Employer-Employee Data

AU - Schank, Thorsten

AU - Schnabel, Claus

AU - Wagner, Joachim

N1 - Publisher Copyright: © 2016 by World Scientific Publishing Co. Pte. Ltd.

PY - 2016/7/1

Y1 - 2016/7/1

N2 - While it is a stylized fact that exporting firms pay higher wages than non-exporting firms, the direction of the link between exporting and wages is less clear. Using a rich set of German linked employer-employee panel data, we follow over time plants that start to export. We show that the exporter wage premium does already exist in the years before firms start to export, and that it does not increase in the following years. Higher wages in exporting firms are thus due to self-selection of more productive, better paying firms into export markets; they are not caused by export activities.

AB - While it is a stylized fact that exporting firms pay higher wages than non-exporting firms, the direction of the link between exporting and wages is less clear. Using a rich set of German linked employer-employee panel data, we follow over time plants that start to export. We show that the exporter wage premium does already exist in the years before firms start to export, and that it does not increase in the following years. Higher wages in exporting firms are thus due to self-selection of more productive, better paying firms into export markets; they are not caused by export activities.

KW - exporter wage premium

KW - Exports

KW - Germany

KW - wages

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=85135651682&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/13f20bd0-1eb0-3c0b-9982-d9e3d6e95ff5/

U2 - 10.1142/9789813109698_0006

DO - 10.1142/9789813109698_0006

M3 - Chapter

AN - SCOPUS:85135651682

SN - 9789813109681

SP - 215

EP - 241

BT - Microeconometrics of International Trade

A2 - Wagner, Joachim

PB - World Scientific Publishing Co.

ER -