Higher Wages in Exporting Firms: Self-Selection, Export Effect, or Both? First Evidence from Linked Employer-Employee Data
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Higher Wages in Exporting Firms: Self-Selection, Export Effect, or Both? First Evidence from Linked Employer-Employee Data. / Schank, Thorsten; Schnabel, Claus; Wagner, Joachim.
In: Review of World Economics, Vol. 146, No. 2, 06.2010, p. 303-322.Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Higher Wages in Exporting Firms: Self-Selection, Export Effect, or Both?
T2 - First Evidence from Linked Employer-Employee Data
AU - Schank, Thorsten
AU - Schnabel, Claus
AU - Wagner, Joachim
N1 - Literaturverz. S. 321 - 322
PY - 2010/6
Y1 - 2010/6
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 - Economics
KW - Exporter wage premium
KW - Exports
KW - Germany
KW - Wages
KW - Gender and Diversity
UR - http://www.scopus.com/inward/record.url?scp=77953905430&partnerID=8YFLogxK
U2 - 10.1007/s10290-010-0049-7
DO - 10.1007/s10290-010-0049-7
M3 - Journal articles
VL - 146
SP - 303
EP - 322
JO - Review of World Economics
JF - Review of World Economics
SN - 1610-2878
IS - 2
ER -