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Foreign Workers And Within Industry Dynamics

Author

Listed:
  • DOMINIC SOON

    (Ministry of Trade and Industry, 100 High Street #11-01, Singapore 179434, Singapore)

  • JANG PING THIA

    (Ministry of Trade and Industry, 100 High Street #11-01, Singapore 179434, Singapore)

Abstract

Using a services firm-level dataset for Singapore, we find that different services industries have different industry dynamics with regards to work-permit foreign workers (FWs). In the retail industry, higher FW use is associated with lower firm-level profitability. This suggests that greater industry consolidation through tighter FW allocation could improve overall productivity in the sector. On the other hand, greater FW use in the hotel industry is associated with higher firm-level productivity. This suggests that FWs represent a critical input that supports more productive firms in this tradable sector. Hence, for this sector, FW policy should be more accommodative.

Suggested Citation

  • Dominic Soon & Jang Ping Thia, 2012. "Foreign Workers And Within Industry Dynamics," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(04), pages 1-15.
    • Handle: RePEc:wsi:serxxx:v:57:y:2012:i:04:n:s0217590812500269
    DOI: 10.1142/S0217590812500269
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor markets; firm heterogeneity; allocative efficiency; J31; J48; L25;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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