Exporting to High-Income Destinations Boosts Wages and Skills Worldwide.
Exporting firms in developing countries pay higher wages and employ more skilled workers than non-exporting firms. This is because they engage in skill-intensive activities and tasks to produce higher quality goods for high-income export markets. The wage premium for exporters disappears when considering factors like technology, productivity, and imported inputs. Industries that export to wealthier countries have higher average wages and require more skilled labor for quality production.