IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i3p58-d1595639.html
   My bibliography  Save this article

The Effects of Foreign Direct Investments on Wage Trends in the Dutch Labor Market

Author

Listed:
  • Gina Ioan

    (Department of Applied Sciences, The Cross Border Faculty, Dunarea de Jos University of Galati, 800201 Galati, Romania)

  • Sirbu Gabriela Carmen

    (Department of Applied Sciences, The Cross Border Faculty, Dunarea de Jos University of Galati, 800201 Galati, Romania)

  • Emanuel Stefan Marinescu

    (Faculty of Communications and International Relations, Danubius University of Galați, 800654 Galati, Romania)

  • Ionel Sergiu Pirju

    (Department of Communication, Faculty of Communication and International Relations, Danubius University of Galati, 800654 Galati, Romania)

Abstract

In this study, we analyze the relationship between economic variables influencing wages in the Dutch economy during the period 1995–2023 using the ARIMAX method. The analysis reveals that lagged wages and salaries for male workers have a strong and significant effect on current wages, while lagged wages and salaries for female workers exhibit a strong negative influence, indicating a potential gender wage gap. The current level of foreign direct investment (FDI) has a negative impact on wages, suggesting that foreign capital may not contribute to wage growth, and we noted that lagged FDI does not significantly affect current wages. These findings highlight the crucial role of past wages in shaping current wage levels and accentuate that gender disparities remain a significant factor in wage determination. Policymakers should consider addressing these gender wage differences and reassess the role of FDIs in wage growth.

Suggested Citation

  • Gina Ioan & Sirbu Gabriela Carmen & Emanuel Stefan Marinescu & Ionel Sergiu Pirju, 2025. "The Effects of Foreign Direct Investments on Wage Trends in the Dutch Labor Market," Economies, MDPI, vol. 13(3), pages 1-15, February.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:58-:d:1595639
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/3/58/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/13/3/58/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ryohei Mogi & Jeroen Spijker, 2022. "The influence of social and economic ties to the spread of COVID-19 in Europe," Journal of Population Research, Springer, vol. 39(4), pages 495-511, December.
    2. Elissa Braunstein & Mark Brenner, 2007. "Foreign direct investment and gendered wages in urban China," Feminist Economics, Taylor & Francis Journals, vol. 13(3-4), pages 213-237.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalgıç, Başak & Fazlıoğlu, Burcu & Varol İyidoğan, Pelin, 2016. "Doğrudan Yabancı Yatırımlar Kadın İstihdamını Artırır mı? Türkiye’de Hizmetler Sektörüne Yakından Bakış [Does Foreign Direct Investment Bring Jobs to Women? A Closer Look to Turkish Services Indust," MPRA Paper 70790, University Library of Munich, Germany.
    2. Alessia Amighini & Weidi Fang & Martin Zagler, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Papers wuwp351, Vienna University of Economics and Business, Department of Economics.
    3. Ernesto Aguayo?Tellez, 2012. "The Impact of Trade Liberalization Policies and FDI on Gender Inequalities : A Literature Review," World Bank Publications - Reports 9220, The World Bank Group.
    4. Hung-Yang Lin, 2013. "Benchmarking Policy Inputs and Social Outputs of Retirement Payment Schemes: China, Hong Kong, Singapore and Taiwan Compared With the Three Worlds," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(6), pages 1328-1344, June.
    5. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    6. Elissa Braunstein, 2019. "Foreign direct investment and development from a gender perspective," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 10, pages 178-187, Edward Elgar Publishing.
    7. Chen, Zhihong & Ge, Ying & Lai, Huiwen & Wan, Chi, 2013. "Globalization and Gender Wage Inequality in China," World Development, Elsevier, vol. 44(C), pages 256-266.
    8. repec:uii:journl:v:10:y:2018:i:1:p:82-92 is not listed on IDEAS
    9. Mizuki Komura & Hikaru Ogawa, 2019. "Capital market integration and gender inequality," Review of Development Economics, Wiley Blackwell, vol. 23(3), pages 1387-1413, August.
    10. Gustafsson, Björn Anders & Sai, Ding, 2008. "Rank, Income and Income Inequality in Urban China," IZA Discussion Papers 3843, Institute of Labor Economics (IZA).
    11. Victor Stolzenburg & Marianne Matthee & Caro Janse van Rensburg & Carli Bezuidenhout, . "Foreign direct investment and gender inequality: evidence from South Africa," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    12. repec:ilo:ilowps:483583 is not listed on IDEAS
    13. Iga Magda & Katarzyna Sa³ach, 2019. "Gender Pay Gap Patterns in Domestic and Foreign-Owned Firms," IBS Working Papers 05/2019, Instytut Badan Strukturalnych.
    14. Dong, Xiao-yuan & Zhang, Liqin, 2009. "Economic transition and gender differentials in wages and productivity: Evidence from Chinese manufacturing enterprises," Journal of Development Economics, Elsevier, vol. 88(1), pages 144-156, January.
    15. Arora, Diksha & Braunstein, Elissa & Seguino, Stephanie, 2023. "A macro analysis of gender segregation and job quality in Latin America," World Development, Elsevier, vol. 164(C).
    16. Gustafsson, Björn & Sai, Ding, 2009. "Rank, income and income inequality in urban China," China Economic Review, Elsevier, vol. 20(3), pages 497-507, September.
    17. Goulding, Kristine., 2013. "Gender dimensions of national employment policies : a 24-country study," ILO Working Papers 994843093402676, International Labour Organization.
    18. Lejárraga,Iza & Ragoussis,Alexandros, 2018. "Beyond Capital : Monitoring Development Outcomes of Multinational Enterprises," Policy Research Working Paper Series 8686, The World Bank.
    19. Iga Magda & Ewa Cukrowska-Torzewska, 2019. "Gender wage gap in the workplace: Does the age of the firm matter?," IBS Working Papers 01/2019, Instytut Badan Strukturalnych.
    20. Somasree Poddar & Sarbajit Chaudhuri, 2016. "Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 301-321, December.
    21. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
    22. Sarbajit Chaudhuri & Somasree Poddar Roychowdhury & Salonkara Chaudhuri, 2019. "Gender-based wage inequality and economic liberalism in the presence of endogenous supply of female labour," Indian Economic Review, Springer, vol. 54(2), pages 239-260, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:58-:d:1595639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.