Higher Wages in Exporting Firms: Self-selection, Export Effect, or Both? First Evidence from Linked Employer-Employee Data

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Authors

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.

Original languageEnglish
Title of host publicationMicroeconometrics of International Trade
EditorsJoachim Wagner
Number of pages27
PublisherWorld Scientific Publishing Co.
Publication date01.07.2016
Pages215-241
ISBN (print)9789813109681
ISBN (electronic)9789813109698
DOIs
Publication statusPublished - 01.07.2016

Bibliographical note

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

    Research areas

  • exporter wage premium, Exports, Germany, wages
  • Economics

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