Who gets the wage premium from export: Top managers or employees?

Kong, Dongmin; Kong, Gaowen; Pang, Lirang; Zhang, Jian

doi:10.1016/j.iref.2018.04.006

Cited by 6 publications

(7 citation statements)

References 37 publications

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“…Using Swedish linked employer–employee data, they find that the foreign ownership wage premium for high‐skilled workers disappears when additionally controlling for individuals' manager status. Manasse and Turrini () discuss a theoretical argument for managers' rent appropriation by arguing that manager income is directly linked to profits, implying that this group benefits disproportionately from cross‐border activity (see Kong, Kong, Panga, & Zhang, , for supportive evidence). In the context of foreign acquisition, incentives for rent appropriation by managers exist in particular if performance‐based contracts stipulate higher remuneration upon successful takeover.…”

Section: Resultsmentioning

confidence: 99%

Reassessing the foreign ownership wage premium in Germany

2020

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This paper evaluates the effect of foreign takeover on wages of workers in German establishments, using rich linked employer–employee data from 2003 to 2014. To identify a causal effect of foreign takeover, we combine propensity‐score matching with a difference‐in‐difference estimator. We find that a takeover by a foreign investor leads to a wage premium of 4.0 log points in the year after ownership change, which further increases to 6.3 log points 3 years after acquisition. The wage premium is largest for high‐skilled workers, which is consistent with three theoretical arguments, namely rent appropriation by managers, technology protection and training on new technology. We also show that the wage premium does not pick up an exporter effect due to a platform investment of the foreign owner, that it takes about 4 years before it fully develops, that it does not vanish after foreign divestment and that the wage increase is specific to foreign acquisition instead of ownership change per se.

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Section: Resultsmentioning

confidence: 99%

Reassessing the foreign ownership wage premium in Germany

2020

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“…Furthermore, as with the previous studies, they also document that postgraduates have displaced college-only graduates from their traditional jobs. On the other hand, Kong et al . (2018) focused on the wage premium obtained by workers in Chinese exporting companies.…”

Section: Related Research and Theoretical Backgroundmentioning

confidence: 97%

“…(2008), Lindley and Machin (2016), Almeida et al . (2017), Kong et al . (2018) and Altonji and Zhong (2021).…”

Section: Related Research and Theoretical Backgroundmentioning

confidence: 99%

Wage premium and master's degrees: some empirical evidence from Spain

Caparrós-Ruiz

2023

IJM

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PurposeThe current expansion of the knowledge economy and its requirements of highly educated workers make interesting to analyse the effects on the labour market outcomes of completing a master's degree. This study examines the factors determining the probability of pursuing a postgraduate programme and observes whether workers reaching this educational attainment reap the benefits of their human capital investment through better paid jobs compared to college-only degree holders. On the other hand, it analyses whether individuals with a master's degree are more prone to upward wage mobility.Design/methodology/approachThe study relies on data obtained from the second survey on the Labour Insertion of University Graduates conducted by the National Statistics Institute (INE, 2019). This survey allows us to observe labour market transitions of the first group of Spanish university graduates under the European Higher Education Area (EHEA) and their earnings. The methodological procedure consists of the estimation of wage models controlling for the unobservable differences between workers who have or have not completed a master's degree.FindingsThe results indicate a significant positive impact of master's degree on salaries. Furthermore, individuals with postgraduate studies are more prone to upward wage mobility in comparison to college-only degree holders.Research limitations/implicationsData used does not allow us to identify which competences associated with the completion of a master's degree are more remunerated by employers.Practical implicationsThe econometric specification applied allows us to compute the direct effect of a master's degree on wages and predict the average probability that an individual is in a determined wage interval according to the knowledge area and controlling by the rest of characteristics.Social implicationsThe findings are helpful to diagnose and understand how the knowledge acquired through postgraduate studies are rewarded by the labour market, which is essential to evaluate the return on educational investments when making decisions about whether or not to continue postgraduate studies.Originality/valueThis research addresses novelty aspects on tertiary education in Spain and its effects on workers' careers.

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“…As a result, the production of high-quality products creates higher wages and increases average wages (Brambilla & Porto, 2016). A study of Chinese export companies also found that companies with higher export intensities pay higher wages to their employees (Kong et al, 2018). This situation could have occurred due to the fact that companies engaged in international trade are economically stronger.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of Influencing Factors on Great Britain‘S Export Values

Medineckienė

Kirdaite

2021

Economics and Culture

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Research purpose. The research aimed at identifying the main factors influencing export values in the region of Great Britain (GB) for the period of the last 30 years. Design / Methodology / Approach. In order to implement the investigation, the following tasks were intended: (1) To analyse scientific literature and mark out at least five non - dependent variables that impact export values of Great Britain. (2) Basing on findings, outlined in a scientific review, suggest or choose the methodology that is the most appropriate for this kind of tasks’ determination. (3) Collect the data for dependent and non-dependent variables (at least 30 samples). (4) Based on the presented methodology, determine the selected factors’ impact and make the statistical and economic analysis. The research was mainly done using quantitative analysis methods (descriptive, correlation, regressive analysis). Quantitative modelling and descriptive statistics methods are selected for investigation because they can suggest a different approach to analysing the factors influencing export values. Findings. Five non-dependent variables were marked out as factors influencing the export values in the selected region: gross domestic product (GDP); the number of employees in the region; amounts of cargo transportation; average salary in the region and labour costs. Calculation of the correlation coefficients showed that all independent variables were statistically significant. There is a very strong relationship between export values and GDP, employment, and labour costs. Originality / Value / Practical implications. The findings of this research can be applied in order to evaluate and determine the economic impact of the GB processes on the entire world, as Britain’s export values are among the top ten in the world. It is important to emphasise that the deeper analysis of the influencing factors of the volume of export in Great Britain showed an interrelation of these factors. So further investigation of this factor’s impact is essential.

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Who gets the wage premium from export: Top managers or employees?

Cited by 6 publications

References 37 publications

Reassessing the foreign ownership wage premium in Germany

Reassessing the foreign ownership wage premium in Germany

Wage premium and master's degrees: some empirical evidence from Spain

Evaluation of Influencing Factors on Great Britain‘S Export Values

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