Browsing by Subject "Wage differentials"

Now showing 1 - 2 of 2
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    Is there a Producer Quality Wage Premium similar to the Exporter Wage Premium
    (2012-09-18) Hernández, Pedro Jesús; Fundamentos del Análisis Económico
    Exporter wage premium has been widely studied in the literature on international trade. The aim of this paper is analyze whether there is also a producer quality wage premium at firm level, and if so, analyze whether its origin is similar to the exporter wage premium. In other words, I test whether firms that increase their product quality become more productive and pay higher wages (as with the learning by exporting hypothesis, we can speak of learning by producing quality), or, in contrast, more-productive firms with higher wages opt to increase product quality because their higher productivity means these kinds of decisions and investments can be taken with more guarantees (self-selection hypothesis).
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    Is there a quality-upgrading wage premium?
    (Emerald Publishing : Asociación Libre de Economía (ALdE), 2016) Hernández Martínez, Pedro Jesús; Fundamentos del Análisis Económico
    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).