Fu, Dahai and Wu, Yanrui (2011): Wage premium in the exporting sector: evidence from manufacturing firms in China.
This is the latest version of this item.
Download (2MB) | Preview
This paper investigates whether exporting firms pay average higher wages than non-exporting firms by analyzing a large sample of Chinese manufacturing firms 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 unevenly distributed among firms with different ownerships, export-orientations 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 offer a lower pay.
|Item Type:||MPRA Paper|
|Original Title:||Wage premium in the exporting sector: evidence from manufacturing firms in China|
|Keywords:||Exporters, Wage premium, Manufacturing, China|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials
L - Industrial Organization > L6 - Industry Studies: Manufacturing
|Depositing User:||Dahai Fu|
|Date Deposited:||17. Aug 2011 13:45|
|Last Modified:||30. Dec 2015 16:25|
Abadie A., Drukker D., Herr J. L. and Imbens G. W. (2004), ‘Implementing Matching Estimator for Average Treatment Effects in Stata’, The Stata Journal, 4, 3, 290-311.
Akerlof G. A. and Yellen J. L. (1990), 'The Fair Wage-Effort Hypothesis and Unemployment', Quarterly Journal of Economics, 105, 2, 255-83.
Alvarez R. and López R. A. (2005), 'Exporting and Performance: Evidence from Chilean Plants', Canadian Journal of Economics, 38, 4, 1384-400.
Arellano M. and Bond S. (1991), ‘Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations’, Review of Economic Studies, 58,2, 277-297.
Baumgarten D. (2010), 'Exporters and the Rise in Wage Inequality-Evidence from German Linked Employer-Employee Data', Ruhr Economic Papers 217, RWI and Ruhr Graduate School in Economics.
Bernard A. B., Eaton J., Jensen J. B. and Kortum S. S. (2003), 'Plants and Productivity in International Trade', American Economic Review, 93, 4, 1268-90.
Bernard A. B. and Wagner J. (1997), 'Exports and Success in German Manufacturing', Review of World Economics, 133, 134-57.
Blinder A. S. (1973), 'Wage Discrimination: Reduced Form and Structural Estimates', Journal of Human Resources, 8, 4, 436-55.
Breau S. and Rigby D. L. (2006), 'Is There Really an Export Wage Premium? A case study of Los Angeles using matched employee-employer data', International Regional Science Review, 29, 3, 297-310.
Buckley P. J., Wang C. and Clegg J. (2007), 'The Impact of Foreign Ownership, Local Ownership and Industry Characteristics on Spillover Benefits from Foreign Direct Investment in China', International Business Review, 16, 142-158.
Chen Z., Ge Y. and Lai H. (2011), 'Foreign Direct Investment and Wage Inequality: Evidence from China', World Development, forthcoming.
Choi K. and Jeong J. (2007), ‘Does Unmeasured Ability Explain the Wage Premium Associated with Technological Change? Quantile Regression Analysis’, Applied Economics, 39, 1163-1171.
Davis D. R. and Harrigan J. (2007), 'Good Jobs, Bad Jobs, and Trade Liberalization', NBER working paper 13139.
D'Agostino R. B., Belanger A. and D'Agostino Jr. R. B. (1990), 'A Suggestion for Using Powerful and Informative Tests of Normality', The American Statistician, 44, 4, 316-21.
Egger H. and Kreickemeier U. (2009), 'Firm Heterogeneity and the Labor Market Effects of Trade Liberalization', International Economic Review, 50, 1, 187-216.
Goldberg P. K. and Pavcnik N. (2007), 'Distributional Effects of Globalization in Developing Countries', Journal of Economic Literature, XLV, 39-82.
Greenaway D. and Yu Z. (2004), 'Firm-level Interactions between Exporting and Productivity: Industry-specific Evidence', Review of World Economics, 140, 376-92.
Hamilton L. C. (2008), Statistics with Stata: Updated for Version 10, (Belmont(CA): Thomson Brooks/Cole).
Hansson P. and Lundin N. N. (2004), 'Exports as an Indicator on or Promoter of Successful Swedish manufacturing firms in the 1990s', Review of World Economics, 140, 415-45.
Helpman E., Itskhoki O. and Redding S. (2010), 'Inequality and Unemployment in a Global Economy', Econometrica, 78, 4, 1239-83.
Koenker R. and Bassett G. (1978), 'Regression Quantiles', Econometrica, 46, 1, 33-50.
Lipsey R. E. and Sjöholm F. (2003), 'Foreign Firms and Indonesian Manufacturing Wages: An Analysis with Panel Data', NBER working paper 9417.
Melitz M. (2003), 'The Impact of Trade on Intra-industry Reallocations and Aggregate Industry Productivity', Econometrica, 71, 1695-725.
Munch J. R. and Skaksen J. R. (2008), 'Human Capital and Wages in Exporting Firms', Journal of International Economics, 75, 363-72.
OECD (2010), 'Growth, Employment and Inequality in Brazil, China, India and South Africa: An Overview', (Paris: OECD).
Schank T., Schnabel C. and Wagner J. (2007), 'Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer-Employee Data', Journal of International Economics, 72, 52-74.
Shapiro C. and Stiglitz J. E. (1984), 'Equilibrium Unemployment as a Worker Discipline Device', American Economic Review, 74, 3, 433-44.
Tsou M.-W., Liu J.-T. and Huang C. J. (2006), 'Export activity, firm size and wage structure: Evidence from Taiwanese manufacturing firms', Asian Economic Journal, 20, 4, 333-54.
Van Biesebroeck J. (2005), 'Exporting Raises Productivity in sub-Saharan African Manufacturing Plants', Journal of International Economics, 67, 2, 373-91.
Verhoogen E. A. (2008), 'Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector', Quarterly Journal of Economics, 132, 2, 489-530.
Wood A. (2002), 'Globalization and Wage Inequalities: A Synthesis of Three Theories', Review of World Economics, 138, 1, 54-82.
Wooldridge J. W. (2000), ‘Introductory Econometrics: A Modern Approach’, South-Western College Publishing, p.91-92.
Xu B. and Li W. (2008), 'Trade, Technology, and China's Rising Skill Demand', Economics of Transition, 16, 1, 59-84.
Yeaple S. R. (2005), 'A Simple Model of Firm Heterogeneity, International trade, and Wages', Journal of International Economics, 65, 1-20.
Zhao Y. (2001), 'Foreign Direct Investment and Relative Wages: The Case of China', China Economic Review, 12, 1, 40-57.
Available Versions of this Item
Exporting wage premium in the exporting sector: evidence from manufacturing firms in China. (deposited 10. Aug 2011 03:22)
- Wage premium in the exporting sector: evidence from manufacturing firms in China. (deposited 17. Aug 2011 13:45) [Currently Displayed]