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Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries

  • Giovanni S.F. Bruno

    (Istituto di Economia Politica, Bocconi University)

  • Anna M.Falzoni

    ()

    (Department of Economics, University of Bergamo)

  • Rosario Crinò

    (CESPRI, Bocconi University)

During the 1990s Poland, Hungary and the Czech Republic have experienced rapid increases in wage inequality between skilled and unskilled workers and received the largest FDI inflow in Central and Eastern Europe. This paper analyzes whether FDI has contributed to the raise in earning inequality via a change in the skill composition of labor demand in the three countries. While we find that in Hungary and the Czech Republic FDI exerts a positive direct impact on the skill-premium, in none of the countries considered FDI has worsened wage inequality by favoring labor demand shifts.

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File URL: http://aisberg.unibg.it/bitstream/10446/234/1/WPEco01(2005)Bruno.pdf
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Paper provided by University of Bergamo, Department of Economics in its series Working Papers (-2012) with number 0501.

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Length: 34 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:brg:wpaper:0501
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