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Exports and Within-Plant Wage Distributions: Evidence from Mexico

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Abstract:

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.

Document Type: Research Article

DOI: http://dx.doi.org/10.1257/aer.102.3.435

Publication date: May 1, 2012

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aea/aer/2012/00000102/00000003/art00076
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