Multinational and exporter wage premia: evidence from southeastern Europe and a panel multiple-treatments approach

Abstract

We explore how the type of global market entry affects wage premia, classifying firms into four categories: domestic only, domestic exporters, non-exporting multinationals, and exporting multinational enterprises. Using firm-level panel data for Bosnia and Herzegovina, Croatia, and Slovenia for the years 2007–2017 and a multivariate endogenous treatment model based on the approach of Wooldridge (J Econom 68(1):115–132, 1995), we find that the multinational wage premia are mainly driven by the export status of multinational firms. Specifically, domestic exporters and exporting multinationals pay on average higher wages than non-exporting firms, whereas non-exporting multinationals tend to pay lower wages than domestic-only firms.