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Abstract

In the context of the debate on the labour-market consequences of globalisation, we examine worker mobility in order to identify the wage differences between foreign and domestic firms. Using matched employer-employee panel data for Portugal, we consider virtually all spells of interfirm mobility over a period of ten years. We find that foreign firms offer significantly more generous wage policies, although there is also a (smaller) selection effect. The results are robust to the consideration of wage growth differences, the case of displaced workers and different subsets of workers.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 49 (2011)
Issue (Month): 2 (04)
Pages: 349-363

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Handle: RePEc:bla:ecinqu:v:49:y:2011:i:2:p:349-363

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Find related papers by JEL classification:

• J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
• J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
• F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

References

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Cited by:

1. Martins, Pedro S. & Opromolla, Luca David, 2009. "Exports, Imports and Wages: Evidence from Matched Firm-Worker-Product Panels," IZA Discussion Papers 4646, Institute for the Study of Labor (IZA).
   
   • Pedro Martins & Luca David Opromolla, 2010. "Exports, Imports and Wages:Evidence from Matched Firm-Worker-Product Panels," Working Papers w201002, Banco de Portugal, Economics and Research Department.
2. Giordano Mion & Luca David Opromolla, 2011. "Managers' Mobility, Trade Status and Wages," CEP Discussion Papers dp1044, Centre for Economic Performance, LSE.
   
   • Mion, Giordano & Opromolla, Luca David, 2011. "Managers' Mobility, Trade Status, and Wages," CEPR Discussion Papers 8230, C.E.P.R. Discussion Papers.
   • Giordano Mion & Luca David Opromolla, 2011. "Managers’ Mobility, Trade Status, and Wages," Working Papers w201104, Banco de Portugal, Economics and Research Department.
3. Earle, John S. & Telegdy, Álmos & Antal, Gábor, 2012. "FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008," IZA Discussion Papers 7095, Institute for the Study of Labor (IZA).

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