Globalisation, Gender, and Equity â€“ Effects of Foreign Direct Investment on Labour Markets in Rural Indonesia
AbstractThis study assesses the impact of foreign direct investment (FDI) on gendered labour markets in rural Indonesia. It focuses on the gender composition of the workforce, female and male workersâ€™ employment conditions and gender wage inequality. The research strategy of "between-methods triangulation" is chosen, denoting the combination of quantitative and qualitative types of data generation and analysis. Two underlying mechanisms have been identified. A "cost effect" associated with transnational corporationsâ€™ (TNCsâ€™) greater orientation towards the world market is the preferential recruitment of, on average, lower paid female workers. In light of global competitive cost considerations, this appears as a rational strategy for TNCs. Conversely, foreign firmsâ€™ advanced technological endowments relative to domestic companies require a well-educated workforce with technical skills. In light of these perspectives, gender gaps in education and, on average, womenâ€™s weaker labour market attachment disadvantage female workersâ€™ employment in TNCs. Both effects are mediated by a "reproductive constraint". This refers to the asymmetric distribution of reproductive obligations between female and male household members, whereby female input into the domestic economy is more demanding relative to that of males.
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Bibliographic InfoArticle provided by Edward Elgar in its journal Intervention. European Journal of Economics and Economic Policies (subtitle initially: Zeitschrift fuer Oekonomie / Journal of Economics).
Volume (Year): 3 (2006)
Issue (Month): 1 ()
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Web page: http://www.elgaronline.com/ejeep
Find related papers by JEL classification:
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
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