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Do exporters pay fair-wage premiums?

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  • Hauptmann, Andreas
  • Schmerer, Hans-Jörg

Abstract

Egger et al. (2011) propose a structural estimation of the exporter wage premium employing a Melitz-trade model with rent sharing due to fair-wage concerns. Our alternative identification strategy, based upon voluntary payments above the agreed wage floor for employers subject to collective agreements, confirms their results.

Suggested Citation

  • Hauptmann, Andreas & Schmerer, Hans-Jörg, 2013. "Do exporters pay fair-wage premiums?," Economics Letters, Elsevier, vol. 121(2), pages 179-182.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:2:p:179-182
    DOI: 10.1016/j.econlet.2013.06.036
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    References listed on IDEAS

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    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    2. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity," Journal of Economic Theory, Elsevier, vol. 146(1), pages 39-73, January.
    3. Egger, Hartmut & Egger, Peter & Kreickemeier, Udo, 2013. "Trade, wages, and profits," European Economic Review, Elsevier, vol. 64(C), pages 332-350.
    4. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 5, pages 177-213, World Scientific Publishing Co. Pte. Ltd..
    5. Hartmut Egger & Udo Kreickemeier, 2017. "Firm Heterogeneity and the Labor Market Effects of Trade Liberalization," World Scientific Book Chapters, in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 10, pages 265-306, World Scientific Publishing Co. Pte. Ltd..
    6. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    7. Davis, Donald R. & Harrigan, James, 2011. "Good jobs, bad jobs, and trade liberalization," Journal of International Economics, Elsevier, vol. 84(1), pages 26-36, May.
    8. Mary Amiti & Donald R. Davis, 2012. "Trade, Firms, and Wages: Theory and Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 1-36.
    9. Michael W. Klein & Christoph Moser & Dieter M. Urban, 2010. "The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality," NBER Working Papers 15985, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Matthias Strifler & Thomas Beissinger, 2016. "Fairness Considerations in Labor Union Wage Setting – A Theoretical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 303-330, July.
    2. Antoni, Manfred & Janser, Markus & Lehmer, Florian, 2015. "The hidden winners of renewable energy promotion: Insights into sector-specific wage differentials," Energy Policy, Elsevier, vol. 86(C), pages 595-613.
    3. Capuano, Stella & Hauptmann, Andreas & Schmerer, Hans-Jörg, 2020. "Trade and unions: Does size matter?," Economic Modelling, Elsevier, vol. 84(C), pages 66-75.
    4. Dauth, Wolfgang & Schmerer, Hans-Joerg & Winkler, Erwin, 2015. "Exporters and wage inequality during the Great Recession—Evidence from Germany," Economics Letters, Elsevier, vol. 136(C), pages 137-140.
    5. Juan Carluccio & Denis Fougère & Erwan Gautier, 2015. "Trade, Wages and Collective Bargaining: Evidence from France," Economic Journal, Royal Economic Society, vol. 0(584), pages 803-837, May.
    6. Egger, Hartmut & Egger, Peter & Kreickemeier, Udo & Moser, Christoph, 2020. "The exporter wage premium when firms and workers are heterogeneous," European Economic Review, Elsevier, vol. 130(C).
    7. Stella Capuano & Andreas Hauptmann & Jans-Jörg Schmerer, 2014. "Trade and Unions: Can Exporters Benefit from Collective Bargaining?," CESifo Working Paper Series 5096, CESifo.

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    More about this item

    Keywords

    Exporter wage premium; Fair wages; Labor market imperfections; Wage drift;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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