Human Capital, Exports, and Earnings

Marcel Fafchamps

Economic Development and Cultural Change, 2009, vol. 58, issue 1, 111-141

Abstract: This study tests whether manufacturing exporters pay more to educated workers in an effort to ascertain whether the productivity of human capital is raised by exports. Using a panel of matched employer-employee data from Morocco, we find no evidence that the education wage premium is higher in exporting sectors and firms. Although exporters pay more on average, much of the wage differential can be explained by the fact that exporters have a larger workforce and more capital. Educated workers who start working for an exporter do not experience a larger wage increase relative to their previous job. We find a mild positive association between exports, technology, and product quality, part of which is due to differences in firm size. We discuss why our results differ from those obtained using different countries and methodologies. (c) 2009 by The University of Chicago. All rights reserved.

Date: 2009
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