Discussion paper

DP8835 Exports and Within-Plant Wage Distributions: Evidence from Mexico

This short paper examines the effect of exporting on within-plant wage distributions in employer-employee data on Mexican manufacturing plants. Using the late-1994 peso devaluation interacted with initial plant size as a source of exogenous variation in exporting and focusing on wages at the 10th, 25th, 50th, 75th and 90th percentiles within each plant, we document three patterns: (1) there is no evidence of an effect of exporting on wages at the 10th percentile; (2) the wage effects of exporting are larger at higher percentiles, up to the 75th; and (3) there is no evidence of an increase in dispersion within the top quartile.

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Citation

Verhoogen, E (2012), ‘DP8835 Exports and Within-Plant Wage Distributions: Evidence from Mexico‘, CEPR Discussion Paper No. 8835. CEPR Press, Paris & London. https://cepr.org/publications/dp8835