Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77791
Authors: 
Alcala, Francisco
Herna'ndez, Pedro J.
Year of Publication: 
2010
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Publisher:] Springer [Place:] Heidelberg [Volume:] 1 [Year:] 2010 [Issue:] 4 [Pages:] 433-458
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.
Subjects: 
wage inequality
international trade
AlchianAllen effect
vertical differentiation
JEL: 
F16
J24
J31
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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