Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/121428 
Year of Publication: 
2015
Series/Report no.: 
BGPE Discussion Paper No. 158
Publisher: 
Friedrich-Alexander-Universität Erlangen-Nürnberg, Bavarian Graduate Program in Economics (BGPE), Nürnberg
Abstract: 
We analyze the evolution of the exporter wage premium (EWP) during the Great Recession and the resulting impact on wage inequality in Germany. Our results show that the EWP declined sharply between 2007 and 2008 and stagnated afterwards. This pattern is due to exporters starting to adjust their wage-setting one year earlier than non-exporters, likely due to the sharp decrease of foreign orders starting in late 2007. Finally, our decomposition shows that the fall of the EWP had a notable negative and persistent effect on wage inequality.
Subjects: 
exporter wage premium
wage-inequality
Great Recession
international trade
matched employer-employee data
JEL: 
F16
J31
Document Type: 
Working Paper

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