Human capital and wages in exporting firms

TY - JOUR

T1 - Human capital and wages in exporting firms

AU - Munch, Jakob Roland

AU - Skaksen, Jan Rose

N1 - JEL classification: J30, F10, I20

PY - 2008

Y1 - 2008

N2 - This paper studies the link between the education level of workers, export performance and wages. 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 there is a weak negative direct effect of exporting on wages, but an interaction term between export intensity and skill intensity has a positive impact on wages. That is, we find an export wage premium, but only in firms where the skill intensity is sufficiently high

AB - This paper studies the link between the education level of workers, export performance and wages. 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 there is a weak negative direct effect of exporting on wages, but an interaction term between export intensity and skill intensity has a positive impact on wages. That is, we find an export wage premium, but only in firms where the skill intensity is sufficiently high

KW - Faculty of Social Sciences

KW - exports

KW - rent sharing

KW - matched worker-firm data

U2 - 10.1016/j.jinteco.2008.02.006

DO - 10.1016/j.jinteco.2008.02.006

M3 - Journal article

SN - 0022-1996

VL - 75

SP - 363

EP - 372

JO - Journal of International Economics

JF - Journal of International Economics

IS - 2

ER -