Examining the Export Wage Premium in Developing Countries

29 Pages Posted: 5 Jul 2017

See all articles by Irene Brambilla

Irene Brambilla

Universidad Nacional de La Plata

Nicolas M. Depetris Chauvin

Princeton University - Department of Economics; Inter-American Development Bank (IADB)

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics

Date Written: August 2017

Abstract

There are arguably potential wage gains from exports in developing countries. Export markets bring about opportunities for firms and successful exporting firms translate some of the benefits of exports to workers via employment and wage premia. Using comparable data for 61 developing and low‐income countries, we document the prevalence of the export wage premia worldwide. With an extensive literature review, we identify four major drivers of the wage premia: exporting firms hire more skilled workers, utilize more sophisticated machines, buy higher quality material inputs and are more productive than non‐exporting firms. Our empirical analysis confirms the worldwide prevalence of these mechanisms and, furthermore, establishes a strong link to the estimated wage premia.

Suggested Citation

Brambilla, Irene and Depetris Chauvin, Nicolas M. and Porto, Guido G., Examining the Export Wage Premium in Developing Countries (August 2017). Review of International Economics, Vol. 25, Issue 3, pp. 447-475, 2017, Available at SSRN: https://ssrn.com/abstract=2997236 or http://dx.doi.org/10.1111/roie.12231

Irene Brambilla (Contact Author)

Universidad Nacional de La Plata ( email )

La Plata, Buenos Aires 1900
Argentina

Nicolas M. Depetris Chauvin

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

HOME PAGE: http://www.princeton.edu/~depetris

Inter-American Development Bank (IADB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Guido G. Porto

Universidad Nacional de La Plata - Faculty of Economics ( email )

1900 La Plata
Argentina

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
181
PlumX Metrics