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Exports and Within-Plant Wage Distributions: Evidence from Mexico

Judith A Frías, David Kaplan () and Eric Verhoogen ()

No 8835, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This short paper examines the effect of exporting on within-plant wage distributions in employer-employee data on Mexican manufacturing plants. Using the late-1994 peso devaluation interacted with initial plant size as a source of exogenous variation in exporting and focusing on wages at the 10th, 25th, 50th, 75th and 90th percentiles within each plant, we document three patterns: (1) there is no evidence of an effect of exporting on wages at the 10th percentile; (2) the wage effects of exporting are larger at higher percentiles, up to the 75th; and (3) there is no evidence of an increase in dispersion within the top quartile.

Keywords: exports; wage distribution (search for similar items in EconPapers)
JEL-codes: F16 J31 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-dev, nep-lab and nep-lma
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