Does foreign direct investment affect wage inequality? An empirical investigation
We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of FDI differs according to the level of development: we depict two different patterns, one for OECD (developed) and one for non-OECD (developing) countries. Results suggest the presence of a non linear effect in developing countries; wage inequality increases with FDI inward stock but this effect diminishes with further increases in FDI. For developed countries, wage inequality decreases with FDI inward stock and there is no robust evidence to show that this effect is non-linear.
Year of publication: |
2006
|
---|---|
Authors: | Figini, Paolo ; Görg, Holger |
Publisher: |
Bonn : Institute for the Study of Labor (IZA) |
Saved in:
freely available
Series: | IZA Discussion Papers ; 2336 |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 532011090 [GVK] hdl:10419/4015 [Handle] |
Source: |
Persistent link: https://www.econbiz.de/10010332858
Saved in favorites
Similar items by person
-
Multinational companies and wage inequality in the host country: the case of Ireland
Figini, Paolo, (1998)
-
Does foreign direct investment affect wage inequality? An empirical investigation
Figini, Paolo, (2006)
-
Multinational companies and wage inequality in the host country: the case of Ireland
Figini, Paolo, (1999)
- More ...