VOLUMEN XXIV |
VERANO 2016 |
IS THERE A QUALITY-UPGRADING WAGE PREMIUM?
|
PEDRO J. HERNÁNDEZ Universidad de Murcia |
This paper analyses the existence of a quality-upgrading wage premium at
the firm level and its connection with the exporting wage premium. Producing
a higher quality product increases the likelihood of exporting and can
activate a learning-by-exporting mechanism. In turn, higher quality products
require employing more-skilled labour, thereby leading to higher wages.
Using a methodology similar to that proposed by Schank et al. (2010), I test
whether firms that increase their product quality pay higher wages (the learning-
by-quality-upgrading hypothesis) or, conversely, if firms with higher
productivity, as proxied by their higher wages, are more likely to increase
the quality of their output (self-selection hypothesis). |
Key words: wage differentials, international trade, exports, product quality. Clasificación JEL: F16, J31, J24. |
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