TY - JOUR
T1 - The Exporter Wage Premium Hypothesis
T2 - An Unconditional Quantile Regression and Decomposition Approach
AU - Ackah, Charles Godfred
AU - Bofah, Richard Osei
N1 - Publisher Copyright:
© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2019/7/3
Y1 - 2019/7/3
N2 - Relying on the World Bank Enterprise Survey dataset in 2012/13, this paper applies the unconditional quantile regression and decomposition estimation techniques to examine the hypothesis that workers in exporting firms receive higher wages than those in non-exporting firms. The results show that the relationship between export and firm’s wage bill is indirect and is transmitted through technology and firm size. Remarkably, these indirect relationships are much more pronounced at the more upper quantiles of the wage bill distribution. However, the net relationships of the interaction between export and technology are relatively larger and positive as compared to that of the interaction between export and firm size which are marginal and mixed. The decomposition analysis indicates that much of the present exporter wage premiums are largely due to the differences in the returns to the characteristics between exporting and non-exporting firms. The findings from this paper suggest directions for future work that can be directly useful for policy.
AB - Relying on the World Bank Enterprise Survey dataset in 2012/13, this paper applies the unconditional quantile regression and decomposition estimation techniques to examine the hypothesis that workers in exporting firms receive higher wages than those in non-exporting firms. The results show that the relationship between export and firm’s wage bill is indirect and is transmitted through technology and firm size. Remarkably, these indirect relationships are much more pronounced at the more upper quantiles of the wage bill distribution. However, the net relationships of the interaction between export and technology are relatively larger and positive as compared to that of the interaction between export and firm size which are marginal and mixed. The decomposition analysis indicates that much of the present exporter wage premiums are largely due to the differences in the returns to the characteristics between exporting and non-exporting firms. The findings from this paper suggest directions for future work that can be directly useful for policy.
KW - Exporter wage premium
KW - firm size
KW - indirect relationship
KW - technology
KW - unconditional quantile techniques
UR - http://www.scopus.com/inward/record.url?scp=85062463489&partnerID=8YFLogxK
U2 - 10.1080/15228916.2019.1582265
DO - 10.1080/15228916.2019.1582265
M3 - Article
AN - SCOPUS:85062463489
SN - 1522-8916
VL - 20
SP - 376
EP - 391
JO - Journal of African Business
JF - Journal of African Business
IS - 3
ER -