Multinational and exporter wage premia: evidence from southeastern Europe and a panel multiple-treatments approach

Peter Egger, Pinar Kaynak Gunes and Benedikt Zoller-Rydzek
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Pinar Kaynak Gunes: ETH Zurich

Empirical Economics, 2024, vol. 66, issue 6, No 4, 2470 pages

Abstract: Abstract We explore how the type of global market entry affects wage premia, classifying firms into four categories: domestic only, domestic exporters, non-exporting multinationals, and exporting multinational enterprises. Using firm-level panel data for Bosnia and Herzegovina, Croatia, and Slovenia for the years 2007–2017 and a multivariate endogenous treatment model based on the approach of Wooldridge (J Econom 68(1):115–132, 1995), we find that the multinational wage premia are mainly driven by the export status of multinational firms. Specifically, domestic exporters and exporting multinationals pay on average higher wages than non-exporting firms, whereas non-exporting multinationals tend to pay lower wages than domestic-only firms.

Keywords: Wage premium; Exporters; Multinational firms; Panel data; Endogenous treatments (search for similar items in EconPapers)
JEL-codes: F14 F16 J21 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00181-023-02535-2

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