Kurzbeschreibung

The export wage premium describes the stylized fact that exporting establishments tend to pay higher wages than non-exporting establishments on average. On the one hand, evidence suggests that the exporter wage premium does already exist in the years before establishments start to export, and that higher wages in exporting establishments are, to a large extent, attributable to self-selection of more productive, better paying establishments into export markets rather than by export activities in themselves (Schank, Schnabel, and Wagner, 2007). On the other hand, recent evidence indicates that establishments make fixed export investments (Fajgelbaum, 2020) and reorganize their workforce (Caliendo, Monte, and Rossi-Hansberg, 2016) before they start exporting. The goal of this project is to investigate and understand establishment's hiring decisions before they start exporting. Specifically, we study how export decisions relate to the size and hiring practices of exporting establishments. Hence the findings will be relevant to understand the overall effects of trade liberalizations and identify winners and losers on the labor market. The analysis will be both theoretical and empirical using the establishment survey and the LIAB.