Export Wage Premium in China's Manufacturing Sector: A Firm Level Analysis

Dahai Fu () and Yanrui Wu

No 11-22, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: This paper investigates whether exporting firms in Chinese manufacturing sector pay higher average wages than non-exporting firms by analyzing a large firm-level dataset derived from the Chinese Industrial Census in 2004. Through rigorous exercises involving robust regressions, quantile regressions and nonparametric matching estimators, we find that the wage premium of exporting activities is not a prevailing phenomenon in China. It is highly associated with heterogeneous characteristics of firms, such as ownership, export-orientation and locations. Overall, exporters located in coastal regions but Guangdong province are more likely to pay higher average wages than nonexporters, while those producing in Guangdong on average offer a lower pay.

Pages: 33 pages
Date: 2011
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Journal Article: Export wage premium in China's manufacturing sector: A firm level analysis (2013)
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