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American Economic Review: Vol. 102 No. 3 (May 2012)

AER Volume. 102, Issue 3 | Previous ArticleNext Article

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Exports and Within-Plant Wage Distributions: Evidence from Mexico

Article Citation

Frías, Judith A., David S. Kaplan, and Eric Verhoogen. 2012. "Exports and Within-Plant Wage Distributions: Evidence from Mexico." American Economic Review, 102(3): 435-40.

DOI: 10.1257/aer.102.3.435

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.

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Authors

Frías, Judith A. (IMSS, Mexico City)
Kaplan, David S. (Inter-American Development Bank)
Verhoogen, Eric (Columbia U)

JEL Classifications

F14: Country and Industry Studies of Trade
J31: Wage Level and Structure; Wage Differentials
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
O19: International Linkages to Development; Role of International Organizations
F16: Trade and Labor Market Interactions