Exports and Within-Plant Wage Distributions: Evidence from Mexico

16 Pages Posted: 1 Mar 2012

See all articles by Judith A. Frías

Judith A. Frías

Instituto Mexicano del Seguro Social (IMSS)

David Kaplan

Inter-American Development Bank (IDB); IZA Institute of Labor Economics

Eric A. Verhoogen

Columbia University - School of International & Public Affairs (SIPA); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: February 2012

Abstract

This short paper examines the effect of exporting on within-plant wage distributions in employer-employee data on Mexican manufacturing plants. Using the late-1994 peso devaluation interacted with initial plant size as a source of exogenous variation in exporting and focusing on wages at the 10th, 25th, 50th, 75th and 90th percentiles within each plant, we document three patterns: (1) there is no evidence of an effect of exporting on wages at the 10th percentile; (2) the wage effects of exporting are larger at higher percentiles, up to the 75th; and (3) there is no evidence of an increase in dispersion within the top quartile.

Keywords: exports, wage distribution

JEL Classification: F16, J31

Suggested Citation

Frías, Judith A. and Kaplan, David and Verhoogen, Eric A., Exports and Within-Plant Wage Distributions: Evidence from Mexico (February 2012). CEPR Discussion Paper No. DP8835, Available at SSRN: https://ssrn.com/abstract=2013826

Judith A. Frías (Contact Author)

Instituto Mexicano del Seguro Social (IMSS) ( email )

Paseo de la Reforma No. 476
Col. Juárez, México D.F. 06600
Mexico

David Kaplan

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Eric A. Verhoogen

Columbia University - School of International & Public Affairs (SIPA) ( email )

420 West 118th Street
New York, NY 10027
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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