According to the ‘convergence hypothesis’, multinational companies will tend to displace national firms and trade as total market size increases and as countries converge in relative size, factor endowments, and production costs. Using a recent model developed by Markusen and Venables (1998)...

While foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers, the causes of this remain unresolved. In a two-period bargaining framework we show that if training is more productive and specific in foreign firms,...

This article presents an empirical analysis of the incidence of visible underemployment in Trinidad and Tobago. Visible underemployment consists of workers who work less than the normal duration of working hours but are willing and available to work more. We find that compared to other groups of...

This article constitutes the first study of the employer size wage effect for a Caribbean country, namely the Republic of Trinidad and Tobago. Using a rich micro-level data set we estimate the firm size wage premium in an empirical model of wage determination. Despite exploring a variety of...

In this paper we investigate the driving factors behind the diverse employment performances of indigenous and foreign-owned (multinational) plants in Ireland. Examining aggregate job creation and job destruction rates we find that the net gain of the foreign sector in Irish manufacturing...

Using plant-level data for the Irish manufacturing sector over the period 1983-98, we study the coagglomeration of domestic plants and foreign multinationals in Ireland. To this end we make use of the index developed by Ellison and Glaeser (1997) and find coagglomeration to be important for a...