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Foreign-owned Plants and Job Security

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  • Martyn Andrews
  • Lutz Bellmann
  • Thorsten Schank
  • Richard Upward

Abstract

We investigate the hypothesis that workers in foreign-owned establishments face greater job insecurity. Using linked employer employee data from Germany, we examine whether foreign-owned establishments are more likely to exit production, and whether workers in foreign-owned establishments face higher separation rates, net of establishment exit. We find that, after controlling for the different characteristics of foreign and domestic establishments, foreign establishments have higher exit rates and higher separation rates, but the effect is quantitatively small. In contrast, foreign-owned establishments which do not export appear to have considerably higher exit rates and separation rates.

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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/36.

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Handle: RePEc:not:notgep:07/36

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Cited by:
  1. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2013. "Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level," European Economic Review, Elsevier, vol. 60(C), pages 170-188.
  2. Joachim Wagner & John P. Weche Geluebcke, 2013. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises during the Crisis 2008-2010," Working Paper Series in Economics 288, University of Lüneburg, Institute of Economics.
  3. Andrews, Martyn J. & Clark, Ken & Whittaker, William, 2008. "The Determinants of Regional Migration in Great Britain: A Duration Approach," IZA Discussion Papers 3783, Institute for the Study of Labor (IZA).
  4. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," Working Papers 075, Bavarian Graduate Program in Economics (BGPE).
  5. John P. Weche Geluebcke & Chiara Franco, 2013. "The death of German firms: What role for foreign direct investment?," Working Paper Series in Economics 264, University of Lüneburg, Institute of Economics.

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