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Foreign direct investment and gendered wages in urban China

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  • Elissa Braunstein
  • Mark Brenner

Abstract

This paper documents the changing impact of foreign direct investment (FDI) on gendered wages in urban China. Combining household survey data from 1995 and 2002 with province-level macro-data, the paper finds that FDI as a proportion of investment has a sizable and statistically significant positive effect on both female and male wages in both years. In 1995, women experienced larger gains from FDI than men, but those gender-based advantages had reversed by 2002, with men experiencing larger wage gains from FDI than women. The paper argues that these results reflect the shift of foreign-invested enterprises to higher productivity and more domestically oriented production, a shift that interacts with gender-based employment segregation to more greatly advantage workers in male-dominated than female-dominated industries. These findings indicate that FDI can have considerable structural effects on economies that reach beyond the particular workers and firms linked to foreign investors.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Feminist Economics.

Volume (Year): 13 (2007)
Issue (Month): 3-4 ()
Pages: 213-237

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Handle: RePEc:taf:femeco:v:13:y:2007:i:3-4:p:213-237

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Related research

Keywords: China; earnings differentials; foreign direct investment; trade liberalization; JEL Codes: F21; J7; O53;

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Citations

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Cited by:
  1. Gustafsson, Björn Anders & Sai, Ding, 2008. "Rank, Income and Income Inequality in Urban China," IZA Discussion Papers 3843, Institute for the Study of Labor (IZA).
  2. Tatli, Ahu & Vassilopoulou, Joana & Özbilgin, Mustafa, 2013. "An unrequited affinity between talent shortages and untapped female potential: The relevance of gender quotas for talent management in high growth potential economies of the Asia Pacific region," International Business Review, Elsevier, vol. 22(3), pages 539-553.
  3. Goulding, Kristine, 2013. "Gender dimensions of national employment policies : a 24-country study," ILO Working Papers 483583, International Labour Organization.
  4. Seo-Young Cho, 2011. "Integrating Equality - Globalization, Women’s Rights, Son Preference and Human Trafficking," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 73, Courant Research Centre PEG.
  5. 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.
  6. Hung-Yang Lin, 2013. "Benchmarking Policy Inputs and Social Outputs of Retirement Payment Schemes: China, Hong Kong, Singapore and Taiwan Compared With the Three Worlds," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(6), pages 1328-1344, June.
  7. Dong, Xiao-yuan & Zhang, Liqin, 2009. "Economic transition and gender differentials in wages and productivity: Evidence from Chinese manufacturing enterprises," Journal of Development Economics, Elsevier, vol. 88(1), pages 144-156, January.
  8. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
  9. Gustafsson, Björn & Sai, Ding, 2009. "Rank, income and income inequality in urban China," China Economic Review, Elsevier, vol. 20(3), pages 497-507, September.
  10. Chen, Zhihong & Ge, Ying & Lai, Huiwen & Wan, Chi, 2013. "Globalization and Gender Wage Inequality in China," World Development, Elsevier, vol. 44(C), pages 256-266.
  11. Goulding, Kristine, 2013. "Gender dimensions of national employment policies : a 24-country study," ILO Working Papers 484309, International Labour Organization.
  12. Neumayer, Eric & de Soysa, Indra, 2011. "Globalization and the Empowerment of Women: An Analysis of Spatial Dependence via Trade and Foreign Direct Investment," World Development, Elsevier, vol. 39(7), pages 1065-1075, July.

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