Eren, Ozlem and Peoples, James (2009): FDI activity and worker compensation: evidence from U.S. non-manufacturing industries. Forthcoming in: Journal of Economics and Finance
Download (401kB) | Preview
This study examines worker compensation effects of foreign direct investment (FDI) activity in US non-manufacturing industry sectors. A clustered standard error correction is used when estimating wage and non-wage compensation equations, with special attention given to FDI’s effect by worker educational attainment and union status. Wage findings reveal that FDI activity is associated with a wage premium for highly educated non-union workers and with union rent erosion for all educational-gender groups excluding females with low educational attainment. Non-wage compensation analysis reveals FDI activity is generally associated with significantly higher probabilities of workers receiving employer financed non-wage compensation for union and non-union workers regardless of their level of educational attainment.
|Item Type:||MPRA Paper|
|Original Title:||FDI activity and worker compensation: evidence from U.S. non-manufacturing industries|
|Keywords:||FDI; labor; educational attainment; compensation; wage; non-manufacturing; union; healthcare; pension;|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F20 - General
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs
|Depositing User:||Ozlem Eren|
|Date Deposited:||06. Nov 2010 20:06|
|Last Modified:||14. Feb 2013 03:00|
Aitken, B. J., Harrison, A. E., Lipsey, R.E. (1995). Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States. NBER Working Paper No. 5102.
Alhakimi, S. and Peoples, J. (2009). Foreign Direct investment and Domestic Wages in the USA. The Manchester School, 77 (1), 47-64.
Almeida, R. (2007). The Labor Market Effects of Foreign-owned Firms. Journal of International Economics, 72(1), 75-96.
Dunning, J. H., (1981). Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Development Approach. Welwirtshaftliches Archiv, (117) 1, 30-64.
Dunning, J. H. (1977). International Production and Alternative Models of Trade. Manchester School of Economic and Social Studies, (45) 4, 392-403.
Feliciano, Z. and Lipsey, R. (2006). Foreign Ownership, Wages and Wage Changes in US Industries, 1987-92. Contemporary Economic Policy, 24(1), 74-91.
Huber, P. J. 1967. The Behavior of Maximum Likelihood Estimates Under Nonstandard Conditions. In Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability. Berkeley, CA: University of California Press, vol. 1, 221–233.
White, H. 1980. A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity. Econometrica 48: 817–830.
Lipsey, R.E. (1994). Foreign Owned Firms and US Wages. NBER Working Paper No. 4927.
Lipsey, R.E. and Sjöholm, F. (2004). Foreign Direct Investment, Education and Wages in Indonesian Manufacturing. Journal of Development Economics, 73 (2004), 415-422.
Martins, P. (2004). Wage Differentials and Wage Spillovers of Foreign Firms: Evidence from Different Estimators. University of Saint Andrews Working Paper.
Zhao, L. (1998). The Impact of Foreign Direct Investment on Wages and Employment. Oxford Economic Papers, 50(2), 284-301