There is a large literature documenting that workers in exporting firms receive higher wages on average than workers in non-exporting firms. This is also the case for Denmark, where the unconditional exporter wage gap is 3 percent. However, little is known about the sources behind the gap: Is it...

In this paper we develop a model capturing key features of the Roy model, a search model, compensating differentials, and human capital accumulation on-the-job. We establish which features of the model can be non-parametrically identified and which cannot. We estimate the model and use it to...