Firms exporting to high income countries pay higher wages and hire more skilled workers.
The study looked at how the destination of exports affects the skills needed and wages paid in Chinese manufacturing firms. They found that firms exporting to wealthier countries pay higher wages, hire more skilled workers, and pay higher skill premiums compared to those exporting to poorer countries or selling domestically. This suggests that the quality of products demanded by consumers in different countries influences the skills required and wages paid by firms.