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Masatoshi Honda, 67, and his son, Koichiro — who run a small dairy farm of about 100 cows in Tokachi — say they are eager to expand and eventually export premium cheese and butter overseas.
They conclude that the export premium only accrues to firms with high human capital.
Using data for Denmark, Munch and Skaksen (2008) have argued that the export premium is only significant for firms with high skill intensity.
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It's beginning to look like a cautionary tale of how a focus on exporting premium foods can damage the producer country's food security.
As a result, they cannot really check if similar workers are paid higher wages in exporting firms and how the exporter premium, if any, depends on individuals' education.
World Excellent Products, set up in 2011 by five young Greeks, exports premium-quality olive oil to 20 countries.
This may be somewhat surprising since the export wage premium has given rise to a large literature whereas this is the first paper documenting a national-market wage premium with respect to local firms.
"I'm sure that SolarWorld will be able to export its premium to the U.S. and partly does so already," said Mr. Bumm, the Cheuvreux analyst.
Mr. Fielding estimates that exporting the premium meat, along with tongues and other offal, brought in $220 per steer.
From a hardscrabble start-up bolstered by government subsidies in the 1930's, it has become a $500 million industry that is second only to Thailand in exports of premium rice.
The exporting wage premium is reduced but still sizeable and significant at the 1%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com