The Effect of Foreign Affiliate Employment on Wages, Employment, and the Wage Share in Austria
AbstractThis paper estimates the effects of outward Foreign Direct Investment (employment in affiliates abroad) on employment, wages and the wage share in Austria using panel data for the period 1996--2005. There is evidence of significant negative effects of FDI on both employment and wages, and consequently on the wage share. The results are not limited to workers in low-skilled sectors. The negative employment effect is mainly due to the rise in employment in the foreign affiliates in Eastern Europe. The negative wage effects originate from affiliate employment in both Eastern Europe and the developed countries in the industrial sector, but FDI in Eastern Europe has positive wage effects in the services sector due to possible scope effects.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Review of Political Economy.
Volume (Year): 24 (2012)
Issue (Month): 2 (April)
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Web page: http://www.tandfonline.com/CRPE20
Other versions of this item:
- Özlem Onaran, 2008. "The effect of foreign affiliate employment on wages, employment, and the wage share in Austria," Department of Economics Working Papers wuwp118, Vienna University of Economics, Department of Economics.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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