Article ID Journal Published Year Pages File Type
5059094 Economics Letters 2013 4 Pages PDF
Abstract

•We identify the exporter wage premium using information about the wage drift.•Support for the fair-wage hypothesis: exporters pay above the binding union wage bound.•Novel instrumentation strategy supports structural estimates (Egger et al., 2011).•Corner solution problem addressed in Tobit and IV-Tobit models.

Egger et al. (2011) propose a structural estimation of the exporter wage premium employing a Melitz-trade model with rent sharing due to fair-wage concerns. Our alternative identification strategy, based upon voluntary payments above the agreed wage floor for employers subject to collective agreements, confirms their results.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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