Publication: Do Exporters Pay Higher Wages? Plant-level Evidence from an Export Refund Policy in Chile

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Date
2009-06-30
ISSN
1564-698X
Published
2009-06-30
Author(s)
Kandilov, Ivan T.
Abstract
The impact of increased export activity on plant wages is estimated in a developing country context. To avoid potential endogenous selection problems, the empirical analysis benefits from exogenous variation in exports induced by a policy experiment—an export subsidy system implemented in Chile in 1986. Analyses using data from a panel survey of Chilean manufacturing establishments show that while the export subsidy had only a modest positive impact on the industrywide relative high-skilled wage, it significantly increased the plant-level relative high-skilled wage in medium-size establishments, which are most likely to take advantage of the subsidy and enter the export market.
Citation
Kandilov, Ivan T.. 2009. Do Exporters Pay Higher Wages? Plant-level Evidence from an Export Refund Policy in Chile. World Bank Economic Review. © World Bank. http://openknowledge.worldbank.org/handle/10986/4503 License: CC BY-NC-ND 3.0 IGO.
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