The Labor Market Effects of Foreign-Owned Firms
Foreign firms often have a more educated workforce and pay higher wages than domestic firms. This does not necessarily imply that foreign ownership translates into higher demand for educated workers or higher wages, since foreign investment may be guided by unobservable firm characteristics correlated with the demand for educated workers or wages. The author examines foreign acquisitions of domestic firms in Portugal in the 1990s and finds small changes in the workforce skill composition and wages following acquisition. Foreign investors "cherry pick" domestic firms that are already very similar to the group of existing foreign firms.
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| Language: | English en_US |
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World Bank, Washington, D.C.
2004-04
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| Subjects: | LABOR MARKETS, LABOR FORCE POPULATION, EMPLOYMENT OPPORTUNITIES, FOREIGN COMPANIES, ECONOMICALLY ACTIVE POPULATION, WAGES AVERAGE PRODUCTIVITY, CAPITAL MARKETS, DOMESTIC FIRMS, EFFICIENCY WAGE THEORY, EMPIRICAL EVIDENCE, EMPLOYMENT, FINANCIAL SUPPORT, FIRM SIZE, FIRMS, FOREIGN DIRECT INVESTMENT, FOREIGN FIRM, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN OWNERSHIP, HUMAN CAPITAL, INTERMEDIATE GOODS, LABOR FORCE, LABOR MARKET, LEGAL FRAMEWORK, MANUFACTURING ESTABLISHMENTS, MARKET OUTCOMES, MINIMUM WAGES, PRODUCTION PROCESS, PRODUCTIVITY, REAL WAGES, STANDARD ERRORS, TECHNOLOGICAL KNOWLEDGE, WAGE DIFFERENTIALS, WAGES, |
| Online Access: | http://documents.worldbank.org/curated/en/2004/05/4264194/labor-market-effects-foreign-owned-firms https://hdl.handle.net/10986/14087 |
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