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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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Suggested Citation

  • Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, 2012. "Foreign-owned plants and job security," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 89-117, April.
  • Handle: RePEc:spr:weltar:v:148:y:2012:i:1:p:89-117
    DOI: 10.1007/s10290-011-0110-1
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    Cited by:

    1. Joachim Wagner & John P. Weche Gelübcke, 2016. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises during the Crisis 2008–2010," World Scientific Book Chapters,in: Microeconometrics of International Trade, chapter 11, pages 369-397 World Scientific Publishing Co. Pte. Ltd..
    2. Martyn Andrews & Ken Clark & William Whittaker, 2011. "The determinants of regional migration in Great Britain: a duration approach," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 127-153, January.
    3. 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.
    4. repec:prg:jnlpep:v:2017:y:2017:i:3:id:617:p:345-359 is not listed on IDEAS
    5. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute for the Study of Labor (IZA).
    6. Michael Moritz & Bastian Stockinger & Merlind Trepesch, 2017. "Multinational Resilience or Dispensable Jobs? German FDI and Employment in the Czech Republic Around the Great Recession," Prague Economic Papers, University of Economics, Prague, vol. 2017(3), pages 345-359.
    7. Chiara Franco & John P. Weche Gelübcke, 2015. "The Death of German Firms: What Role for Foreign Direct Investment?," The World Economy, Wiley Blackwell, vol. 38(4), pages 677-703, April.
    8. FERRAGINA, Anna Maria & MAZZOTTA, Fernanda, 2017. "Firm Employment Resilience and FDI: Evidence from Italy," CELPE Discussion Papers 152, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    9. repec:spr:astaws:v:11:y:2017:i:1:d:10.1007_s11943-017-0200-1 is not listed on IDEAS

    More about this item

    Keywords

    Foreign-owned plants; Plant closure; Worker separations; Duration modelling; F23; J63; C41;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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