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Is More Mobility Good? Firm Mobility and the Low Wage -- Low Productivity Trap Author info | Abstract | Publisher info | Download info | Related research | Statistics Stephanie Seguino
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This paper explores the possibility that unregulated FDI flows are causally implicated in the decline in labor productivity growth in semi-industrialized economies. These effects are hypothesized to operate through the negative impact of firm mobility on worker bargaining power and thus affecting wages. Downward pressure on wages can reduce the pressure on firms to raise productivity in defense of profits, contributing to a low wageÐlow productivity trap. This paper presents empirical evidence, based on panel data fixed effects and GMM estimation for 37 semi-industrialized economies, that supports the causal link between increased firm mobility and lower wages, as well as slower productivity growth over the period 1970Ð2000.
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Paper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number
wp_423.
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Date of creation: May 2005Date of revision:
Handle: RePEc:lev:wrkpap:wp_423Contact details of provider: Web page: http://www.levy.org
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Arellano, Manuel & Bond, Stephen, 1991.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Stephanie Seguino, 2005.
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Stephanie Seguino & Caren Grown, 2006.
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"The great equalizer?: Globalization effects on gender equality in Latin America and the Caribbean ,"
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