Publication:
Is there a quality-upgrading wage premium?

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Date
2016
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Authors
Hernández Martínez, Pedro Jesús
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Publisher
Emerald Publishing : Asociación Libre de Economía (ALdE)
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DOI
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Description
© 2016 El autor. This manuscript version is made available under the CC-BY 4.0 license http://creativecommons.org/licenses/by/4.0/ This document is the Published Manuscript version of a Published Work that appeared in final form in Revista de Economía Aplicada.
Abstract
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).
Citation
Revista de Economía Aplicada, 2016, Vol. 24, N. 71, pp. 69-92.
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