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The Role of Multinational Firms in the Wage-Gap Debate

  • Markusen, James R
  • Venables, Anthony J

The observation of an increase in the ratio of skilled to unskilled wages in the high-income countries and in some cases in low/middle-income countries has led to considerable discussion and controversy as to its cause. Virtually none of the analyses have considered a role for multinational investment in explaining the wage-gap phenomenon. This paper adapts the authors' earlier work to consider what role multinationals might play in factor markets. It identifies circumstances under which investment liberalization is likely to raise the wage gap in both the skilled-labor abundant and the unskilled-labor abundant country. Copyright 1997 by Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 5 (1997)
Issue (Month): 4 (November)
Pages: 435-51

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Handle: RePEc:bla:reviec:v:5:y:1997:i:4:p:435-51
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  1. Wood Júnior, Thomaz, 1995. "Workers," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 35(2), January.
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