The Research On The Effect And Channels Of Export And Export Tax Rebate On The Wage Level

Since the reform and opening,especially after China became a member of the World Trade Organization(WTO),total quantity of Chinese export goods shows a rapid growth trend,export trade effectively promoted the growth of China's economy and become a powerful driving force for China's economic development.Consequently,the impact of the increase in social welfare from export trade and the related policies on the distribution of wages in the labor market has received widespread attention.Previous scholars focused more on the policy of tariff,and export tax rebate as a natural trade policy has not been fully studied.This paper uses the data of manufacturing enterprises in the database of China Industry Business Performance Data from 2000 to 2006,combining the export tax rebate rate data of different years and different industries.Besides,I choose the weighted export rate as an instrumental variable by combining customs data and export rate data.Based on the above data samples,this paper research the effect of export decision and export tax rebate on employees'average wage on firm-level.In addition,this paper distinguishes the two functionary channels of export tax rebate on the average wage of employees,the labor output elasticity and the staff bargaining power,and quantifies how each channel changes the effect of export tax rebate on employees,wage level by calculating the marginal effect of export tax rebate.The sensitivity of wage level to each channel is also be shown in this paper.In this paper,the theoretical analysis and empirical regression results show that;(1)The average wage of employees in export firms is higher than that of non-export firms;(2)For export enterprises,the export tax rebate rate has a significant positive effect on average wages.With the export tax rebate increasing 1%,the average wage will increase 0.578%;(3)The higher the degree of export firm's labor intensity,the lower the average wage growth of its employees;the higher bargaining power of employees of the export enterprises is contributing to the higher growth rate of wage level.Especially,changes in average wages are more sensitive to the changes in labor intensity.