Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34847 
Year of Publication: 
2008
Series/Report no.: 
IZA Discussion Papers No. 3359
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
While it is a stylized fact that exporting firms pay higher wages than non-exporting firms, the direction of the link between exporting and wages is less clear. Using a rich set of German linked employer-employee panel data we follow over time plants that start to export. We show that the exporter wage premium does already exist in the years before firms start to export, and that it does not increase in the following years. Higher wages in exporting firms are thus due to self-selection of more productive, better paying firms into export markets; they are not caused by export activities.
Subjects: 
Exports
wages
exporter wage premium
Germany
JEL: 
F10
Document Type: 
Working Paper

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