However, within this data other variables such as the gender and age of the worker and the size, sector and province of the firm also have an impact. Isolating the effect of these variables, that is, comparing workers in “similar” conditions, the wage premium for exporting is 29.8%, equivalent to the salary premium for a university degree estimated with the Permanent Household Survey (EPH).
The report’s results showed that just over half of that gap by exports (almost 56%), responds to quantifiable differences, such as the high correlation between export insertion, higher productivity and larger size of the firm. On the other hand, the rest responds to the way in which companies pay for certain attributes of the workers or variables not treated, such as the level of unionization existing in the firm.
The CEP highlighted that this high gap “indicates that the remuneration structure differs considerably between sections of the economy characterized by visibly different levels of productivity and scale.”
In that sense, they argued that expanding exports is not only necessary to alleviate balance of payments imbalances but also for social and distributional considerations.
“Exporting is, at the same time, a cause and consequence of the accumulation of skills, the development of new products, the fulfillment of higher quality standards (including here those related to the mitigation of environmental damage), the increase of the productive scale and other objectives that mean expansion of local productive capacities “, the report deepened.
“The evidence indicates that a more powerful, modern and efficient productive network will grant its workers better compensation, and will thus contribute to improving the population’s living conditions and reducing the poverty rate,” concluded the center led by Daniel Schteingart.