International conference: Dynamics, Economic Growth and International Trade DEGIT – XXI Conference

South Africa - 21 November 2017

Title: Exporting wages and wage inequality in South Africa
Author(s): Bezuidenhout, C., Matthee, M. & Rankin, N.A.

Abstract:
This paper investigates the relationship between exporting and the within-firm distribution of wages in South Africa. A key finding is that an export premium exists across the wage distribution and this increases with wages. The premium is higher for firms that export outside of Africa compared to firms that export within the continent only. However, the shape of the premium distribution across the two types of destinations is similar for firms about to commence exporting and those already active in the export market, which suggests that it is not exporting that leads to this inequality. The paper considers two potential explanations for the higher wage inequality among exporters – characteristics of the destination economy (proxied by GDP) and quality of exports, and finds little evidence that the results are driven by these.

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