Argentina: wages in exporting firms are 30% higher

Workers in exporting companies receive salaries that average 30% more than in firms that only supply the domestic market, says a report from the Center for Production Studies (CEP XXI), under the Ministry of Productive Development.

The document entitled “The wage premium of Argentine exporting firms” indicates that companies that allocate part of their production to international markets “pay wages that are more than double those paid by firms that only supply the local market.”

However, he explains that by isolating the effect of observable differences between workers and companies of both groups, “a wage premium is obtained for working in an export firm of 29.8 percent.”

“This is a very relevant difference, which indicates that the remuneration structure differs considerably between sections of the economy characterized by visibly different levels of productivity and scale,” the report highlights.

The CEP XXI investigation was based on data provided by the Argentine Integrated Pension System (SIPA) and the General Customs Directorate (DGA) and highlighted that about 1.8 million workers work in exporting firms.

Although the document reveals that, on average, exporting companies pay salaries 125% higher than the rest of the companies, isolating other factors that affect (for example, productivity, scale, technological advantages, the sector in the one they perform, the size of the company) it is concluded that the average salary is 29.8% higher than the rest of the salaries in the economy.

Leave a Comment