Abstract
This study adopts a semiparametric smooth coefficient model to evaluate the export-wage premiums, firm size-wage premiums, and the wage gap between skilled and unskilled labor. Particular focus is placed upon widespread evidence indicating that pay levels in 'large' and 'export-oriented' firms are higher than in their 'small' and 'domestic-oriented' counterparts. Applying the firm-level data for Taiwanese manufacturing firms, we find a positive export-wage premium for skilled workers and a negative export-wage premium for unskilled workers. The hypothesis of a constant export premium across firm size is rejected. While most of the export-wage premiums for skilled labor can be attributed to the small and medium firms, the large exporting firms have a significant adverse effect on wages for unskilled labor. Moreover, our results suggest that the firm size-wage premiums for skilled workers are larger than those for unskilled workers. The wage gap between the two skill groups is also sensitive to size categories.
| Original language | English |
|---|---|
| Pages (from-to) | 333-354 |
| Number of pages | 22 |
| Journal | Asian Economic Journal |
| Volume | 20 |
| Issue number | 4 |
| DOIs | |
| State | Published - Dec 2006 |
Keywords
- Export
- Firm size
- Semiparametric estimation
- Wage