Trade, Wages, and Profits

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Show simple item record Egger, Hartmut de_DE Egger, Peter de_DE Kreickemeier, Udo de_DE 2011-12-16 de_DE 2014-03-18T10:03:48Z 2011-12-16 de_DE 2014-03-18T10:03:48Z 2011 de_DE
dc.identifier.other 355059274 de_DE
dc.identifier.uri de_DE
dc.description.abstract This paper formulates a structural empirical model of heterogeneous firms whose workers exhibit fair-wage preferences. In the underlying theoretical framework, such preferences lead to a link between a firm’s operating profits on the one hand and wages of workers employed by this firm on the other hand. The latter establishes an exporter wage premium, since exporters have higher profits, given their productivity, than non-exporting firms. We estimate the parameters of the model in a data-set of five European economies and find that, when evaluated at these parameter values, the model has a high level of explanatory power. The estimates also enable us to quantify the exporter wage premium and the consequences of trade for the main variables of interest. According to our results, openness to international trade contributes to greater inequality across firms in terms of both operating profits and average wages. We also find evidence for gains from trade for all five countries, which go along with negative, but quantitatively moderate, aggregate employment effects. en
dc.language.iso en de_DE
dc.publisher Universität Tübingen de_DE
dc.rights ubt-podno de_DE
dc.rights.uri de_DE
dc.rights.uri en
dc.subject.classification Außenhandel de_DE
dc.subject.ddc 330 de_DE
dc.subject.other Structural models , Heterogeneous firms , Fair wages , Labour market imperfections , Exporter wage premium en
dc.title Trade, Wages, and Profits en
dc.type WorkingPaper de_DE
utue.publikation.fachbereich Wirtschaftswissenschaften de_DE
utue.publikation.fakultaet 6 Wirtschafts- und Sozialwissenschaftliche Fakultät de_DE
dcterms.DCMIType Text de_DE
utue.publikation.typ workingPaper de_DE 5946 de_DE
utue.publikation.source University of Tübingen Working Papers in Economics and Finance ; 23 de_DE


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