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Foreign Ownership, Wages, And Wage Changes In U.S. Industries, 1987–92

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  • ZADIA M. FELICIANO
  • ROBERT E. LIPSEY

Abstract

The authors construct a data set by industry by state by ownership for establishments in the United States using 1987 and 1992 U.S. Census and Bureau of Economic Analysis matched data to investigate the relationship between foreign ownership and wages. They find evidence that foreign‐owned establishments pay higher wages in manufacturing, retail trade, and other relatively low‐skill industries, but not in other higher‐skill industries. A growth in the fraction of employment in foreign establishments was not significantly associated with an increase in overall wages. There is no evidence of a wage spillover to domestic establishments. (JEL J3, F2)

Suggested Citation

  • Zadia M. Feliciano & Robert E. Lipsey, 2006. "Foreign Ownership, Wages, And Wage Changes In U.S. Industries, 1987–92," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 74-91, January.
  • Handle: RePEc:bla:coecpo:v:24:y:2006:i:1:p:74-91
    DOI: 10.1093/cep/byj003
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    References listed on IDEAS

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    5. Sjoholm, Fredrik & Lipsey, Robert E, 2006. "Foreign Firms and Indonesian Manufacturing Wages: An Analysis with Panel Data," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 201-221, October.
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    7. Almeida, Rita, 2007. "The labor market effects of foreign owned firms," Journal of International Economics, Elsevier, vol. 72(1), pages 75-96, May.
    8. Nigel Driffield & Sourafel Girma, 2003. "Regional Foreign Direct Investment and Wage Spillovers: Plant Level Evidence from the UK Electronics Industry," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 453-474, September.
    9. Mark E. Doms & J . Bradford Jensen, 1998. "Comparing Wages, Skills, and Productivity between Domestically and Foreign-Owned Manufacturing Establishments in the United States," NBER Chapters, in: Geography and Ownership as Bases for Economic Accounting, pages 235-258, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Rosanna Pittiglio & Filippo Reganati & Edgardo Sica, 2015. "Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?," Manchester School, University of Manchester, vol. 83(3), pages 346-378, June.
    2. John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics," Working Paper Series in Economics 213, University of Lüneburg, Institute of Economics.
    3. John Devereux & Zadia M. Feliciano, 2013. "Robert E. Lipsey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 375-380, June.
    4. Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 37(3), pages 319-338, July.
    5. Nguyen, Dao Thi Hong, 2019. "Inward foreign direct investment and local wages: The case of Vietnam’s wholesale and retail industry," Journal of Asian Economics, Elsevier, vol. 65(C).
    6. John Weche Gelübcke, 2013. "The performance of foreign affiliates in German manufacturing: evidence from a new database," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 151-182, March.
    7. 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.

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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • F2 - International Economics - - International Factor Movements and International Business

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