The Exporter Wage Premium Hypothesis: An Unconditional Quantile Regression and Decomposition Approach
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Date
2019
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Journal ISSN
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Publisher
Journal of African Business
Abstract
Relying on the World Bank Enterprise Survey dataset in 2012/13, this
paper applies the unconditional quantile regression and decomposi tion 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 pre sent 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.
Description
Research Article
Keywords
Exporter wage premium, technology, firm size
Citation
Charles Godfred Ackah & Richard Osei Bofah (2019) The Exporter Wage Premium Hypothesis: An Unconditional Quantile Regression and Decomposition Approach, Journal of African Business, 20:3, 376-391, DOI: 10.1080/15228916.2019.1582265