CEU Electronic Theses and Dissertations, 2014
Author | Todorova, Iva Stefanova |
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Title | Exporting and Wages: an Analysis Using Linked Employer-Employee Data for Hungary, 2002-2011 |
Summary | This thesis investigates the relationship between trade and the labor market. In particular, it examines whether workers employed by firms which export receive higher wages than those employed by firms which sell only domestically. The literature up to date shows a small but significant exporter wage premium. The data for the empirical estimation comes for a large linked employer-employee dataset for Hungary for the years 2002-2011. Applied to this rich dataset, the estimation procedure can account for a large set of firm and worker characteristics, as well as to look for a differential effect across worker types. In addition, the paper attempts to address the issue of self-selection of firms into trade, using panel data methods and a matching approach. The study finds that, on average, exporters pay substantially higher wages. When firms and worker characteristics are taken into consideration, the difference remains positive and significant, but it declines markedly. The premium differs across workers: women are paid less, and workers with high education and skill – more, by exporters. When self-selection is also taken into account, the effect of exporting on wages becomes negative, but its magnitude is very small. Overall, the paper fails to find evidence in support of the existence of an exporter wage premium. |
Supervisor | Telegdy, Álmos |
Department | Economics MA |
Full text | https://www.etd.ceu.edu/2014/todorova_iva.pdf |
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