Arbeitspapier

Higher wages in exporting firms: self-selection, export effect, or both? First evidence from German linked employer-employee data

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.

Language
Englisch

Bibliographic citation
Series: Diskussionspapiere ; No. 55

Classification
Wirtschaft
Trade: General
Firm Behavior: Theory
Wage Level and Structure; Wage Differentials
Subject
exports
wages
exporter wage premium
Germany
Exportindustrie
Lohnniveau
Produktivität
Deutschland

Event
Geistige Schöpfung
(who)
Schank, Thorsten
Schnabel, Claus
Wagner, Joachim
Event
Veröffentlichung
(who)
Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
(where)
Nürnberg
(when)
2008

Handle
Last update
20.09.2024, 8:24 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schank, Thorsten
  • Schnabel, Claus
  • Wagner, Joachim
  • Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik

Time of origin

  • 2008

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