Human Capital and Wages in Exporting Firms

Jakob Roland Munch, Jan Rose Skaksen

Research output: Working paperResearch

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Abstract

This paper studies the link between a firms education level, export performance and wages of its workers. We argue that firms may escape intense competition in international markets by using high skilled workers to differentiate their products. This story is consistent with our empirical results. Using a very rich matched worker-firm longitudinal dataset we find that firms with high export intensities pay higher wages. However, an interaction term between export intensity and skill intensity has a positive impact on wages and it absorbs the direct effect of the export intensity. That is, we find an export wage premium, but it accrues to workers in firms with high skill intensities.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDepartment of Economics. Copenhagen Business School
Number of pages24
Publication statusPublished - 2006
SeriesWorking Paper / Department of Economics. Copenhagen Business School
Number9/2006

Keywords

  • Export
  • Wages
  • Human capital
  • Rent sharing
  • Matched worker-firm data

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