Wage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data

Author Name TANAKA Ayumu  (Research Associate, RIETI)
Creation Date/NO. September 2015 15-E-106
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This study examines wage premiums for exporters, domestically owned multinational enterprises (MNEs), and foreign-owned firms, using Japanese linked employer-employee data. In this study, I employ the Mincer wage equations to investigate the wage premiums. In addition to the standard regression method, I use the quantile regression (QR) technique to reveal the premium in each quantile of the wage distribution. Unlike previous studies, this study jointly examines the premiums for exporters, domestically owned MNEs, and foreign-owned firms, and shows that wage premiums for foreign firms exist, whereas for local exporters and domestically owned MNEs, they almost disappear, after controlling for plant and worker characteristics. The results from QRs reveal that the foreign wage premium is larger in the higher quantiles of the wage distribution. In contrast, the wage premiums for exporters and domestically owned MNEs are smaller and even negative in higher quantiles.