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Exporting Firms Do Not Pay Higher Wages, Ceteris Paribus. First Evidence from Linked Employer-Employee Data

Thorsten Schank (), Claus Schnabel () and Joachim Wagner ()

No 1185, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 18 studies using data from 20 highly developed, developing, and less developed countries document that average wages in exporting firms are higher than in non-exporting firms from the same industry and region. The existence of these so-called exporter wage premia is one of the stylized facts found in the emerging literature on the microeconometrics of international trade. This paper uses a large and rich set of linked employer-employee data from Germany to demonstrate that these premia vanish when individual characteristics of the employees and of the work place are controlled for.

Keywords: exports; linked employer-employee data; wages; exporter wage premia; Germany (search for similar items in EconPapers)
JEL-codes: F10 D21 L60 (search for similar items in EconPapers)
Date: 2004-06
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