Arbeitspapier

Exporters and the Rise in Wage Inequality – Evidence from German Linked Employer-Employee Data

Using a linked employer-employee data set of the German manufacturing sector, this paper analyses the role of exporting establishments in explaining rising wage dispersion. Over the period of analysis (1996-2007), the raw wage differential between exporters and domestic establishments increased substantially, which can only partly be attributed to corresponding changes in human capital endowments and the returns to them. These findings are consistent with recent heterogeneous-firm trade models that feature an exporter wage premium as well as variability of the premium with respect to increasing trade liberalization. A decomposition analysis shows that the increase in the conditional wage gap indeed contributed to rising wage inequality both within and between skill groups. In contrast, the growing employment share of exporters contributed to a reduction in wage dispersion.

ISBN
978-3-86788-249-1
Language
Englisch

Bibliographic citation
Series: Ruhr Economic Papers ; No. 217

Classification
Wirtschaft
Trade and Labor Market Interactions
Wage Level and Structure; Wage Differentials
Subject
exports
wages
exporter wage premium
wage inequality
linked employeremployee data
decomposition

Event
Geistige Schöpfung
(who)
Baumgarten, Daniel
Event
Veröffentlichung
(who)
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
(where)
Essen
(when)
2010

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Baumgarten, Daniel
  • Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Time of origin

  • 2010

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