Exports and wages: Rent sharing, workforce composition, or returns to skills?

Mario Macis, Fabiano Schivardi

Research output: Contribution to journalArticlepeer-review

Abstract

We use linked employer-employee data from Italy to explore the relationship between exports and wages. Exploiting the 1992 devaluation of the lira, we show that exporting firms both pay a wage premium above what their workers would earn in the outside labor market (the “rent-sharing” effect) and employ workers whose skills command a higher price after the devaluation (the “skill composition” effect). The latter only emerges once we allow for the value of workers’ skills to differ in the pre-and post-devaluation periods. We also document that the export wage premium is larger for workers with more export-related experience.

Original languageEnglish (US)
Pages (from-to)945-978
Number of pages34
JournalJournal of Labor Economics
Volume34
Issue number4
DOIs
StatePublished - Oct 2016

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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