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Foreign Ownership, Wages, And Wage Changes In U.S. Industries, 1987-92

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Author Info

  • ZADIA M. FELICIANO
  • ROBERT E. LIPSEY

Abstract

The authors construct a data set by industry by state by ownership for establishments in the United States using 1987 and 1992 U.S. Census and Bureau of Economic Analysis matched data to investigate the relationship between foreign ownership and wages. They find evidence that foreign-owned establishments pay higher wages in manufacturing, retail trade, and other relatively low-skill industries, but not in other higher-skill industries. A growth in the fraction of employment in foreign establishments was not significantly associated with an increase in overall wages. There is no evidence of a wage spillover to domestic establishments. (JEL "J3", "F2") Copyright 2006 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 24 (2006)
Issue (Month): 1 (01)
Pages: 74-91

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Handle: RePEc:bla:coecpo:v:24:y:2006:i:1:p:74-91

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Cited by:
  1. Pandej Chintrakarn & Dierk Herzer & Peter Nunnenkamp, 2010. "FDI and Income Inequality: Evidence from a Panel of US States," Kiel Working Papers 1579, Kiel Institute for the World Economy.
  2. Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer, vol. 37(3), pages 319-338, July.
  3. John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics," Working Paper Series in Economics 213, University of Lüneburg, Institute of Economics.
  4. Chen, Zhihong & Ge, Ying & Lai, Huiwen, 2011. "Foreign Direct Investment and Wage Inequality: Evidence from China," World Development, Elsevier, vol. 39(8), pages 1322-1332, August.
  5. John Weche Gelübcke, 2013. "The performance of foreign affiliates in German manufacturing: evidence from a new database," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(1), pages 151-182, March.

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