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

Research output: Working paperWorking papers

Authors

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.
Original languageEnglish
Place of PublicationLüneburg
PublisherInstitut für Volkswirtschaftslehre der Universität Lüneburg
Number of pages35
Publication statusPublished - 06.2006

Bibliographical note

We thank Mark Roberts and participants at the European Trade Study Group ETSG conference in Nottingham in September 2004 as well as two referees and a co-editor of this journal for extremely helpful comments that guided us in the revision of an earlier version which circulates as IZA Discussion Paper No. 1185 since June 2004. Many thanks also go to Susanne Rässler and Hermann Gartner for helpful discussions and for providing their (unpublished) multiple imputation algorithm, and to Manfred Antoni for technical assistance

    Research areas

  • Economics - Exports, Wages, Exporter wage premium, Linked employer-employee data, Germany

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