Publication:
Firms’ Main Market, Human Capital, and Wages

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Date
2010-01-08
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Authors
Alcalá, Francisco ; Hernández, Pedro Jesús
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Publisher
Springer
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DOI
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info:eu-repo/semantics/article
Description
© 2019 The authors This document is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0 This document is the published version of a published work that appeared in final form in SERIEs To access the final work, see https://doi.org/ 10.1007/s13209-009-0007-6
Abstract
The literature on the exporter wage premium has focused on an exporter/non-exporter dichotomy. Instead, this paper provides first evidence that there is a more continuous destination-market effect. Using Spanish data, we estimate wage premia for establishments selling to the national, European Union, and rest of the world markets (with respect to wages in local-market establishments). Controlling for worker and establishment characteristics, output-market wage premia are increasing in market remoteness and employee education. Establishment human capital is also increasing in output-market remoteness. The paper builds a theoretical model that provides a potential explanation for these empirical results, which is also consistent with the recent evidence on the positive relationship between output-market remoteness and quality of exports.
Citation
SERIEs (2010) 1:433–458
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