FDI activity and worker compensation: evidence from U.S. non-manufacturing industries
This study examines worker compensation effects of foreign direct investment (FDI) activity in US non-manufacturing industry sectors. A clustered standard error correction is used when estimating wage and non-wage compensation equations, with special attention given to FDI’s effect by worker educational attainment and union status. Wage findings reveal that FDI activity is associated with a wage premium for highly educated non-union workers and with union rent erosion for all educational-gender groups excluding females with low educational attainment. Non-wage compensation analysis reveals FDI activity is generally associated with significantly higher probabilities of workers receiving employer financed non-wage compensation for union and non-union workers regardless of their level of educational attainment.
|Date of creation:||Dec 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aitken, Brian & Harrison, Ann & Lipsey, Robert E., 1996.
"Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States,"
Journal of International Economics,
Elsevier, vol. 40(3-4), pages 345-371, May.
- Brian Aitken & Ann Harrison & Robert E. Lipsey, 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States," NBER Working Papers 5102, National Bureau of Economic Research, Inc.
- Aitken, B. & Harrison, A. & Lipsey, R.E., 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States," Papers 95-21, Columbia - Graduate School of Business.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, December.
- Dunning, John H & Buckley, Peter J, 1977. "International Production and Alternative Models of Trade," The Manchester School of Economic & Social Studies, University of Manchester, vol. 45(4), pages 392-403, December.
- Natália Monteiro & Miguel Portela & Odd Straume, 2011.
"Firm Ownership and Rent Sharing,"
Journal of Labor Research,
Springer, vol. 32(3), pages 210-236, September.
- Monteiro, Natália Pimenta & Portela, Miguel & Straume, Odd Rune, 2010. "Firm Ownership and Rent Sharing," IZA Discussion Papers 4909, Institute for the Study of Labor (IZA).
- Natália P. Monteiro & Miguel Portela & Odd Rune Straume, 2010. "Firm ownership and rent sharing," NIPE Working Papers 13/2010, NIPE - Universidade do Minho.
- Almeida, Rita, 2007.
"The labor market effects of foreign owned firms,"
Journal of International Economics,
Elsevier, vol. 72(1), pages 75-96, May.
- Robert E. Lipsey, 1994. "Foreign-Owned Firms and U.S. Wages," NBER Working Papers 4927, National Bureau of Economic Research, Inc.
- Lipsey, Robert E. & Sjoholm, Fredrik, 2004. "Foreign direct investment, education and wages in Indonesian manufacturing," Journal of Development Economics, Elsevier, vol. 73(1), pages 415-422, February.
- 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, 01.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Zhao, Laixun, 1998. "The Impact of Foreign Direct Investment on Wages and Employment," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 284-301, April.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Karen J Buhr, 2010. "Do Immigrant Nurses in Canada See a Wage Penalty? An Empirical Study," Business Economics, Palgrave Macmillan, vol. 45(3), pages 210-223, July.
- Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
- Avner Ahituv & Robert Lerman, 2007. "How do marital status, work effort, and wage rates interact?," Demography, Springer, vol. 44(3), pages 623-647, August.
- DuMond J.M. & Hisch, B.T. & Macpherson, D.A., 1996.
"Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?,"
1996_08_01, Department of Economics, Florida State University.
- Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-98, October.
- Saif S. Alhakimi & James Peoples, 2009. "Foreign Direct Investment And Domestic Wages In The Usa," Manchester School, University of Manchester, vol. 77(1), pages 47-64, 01.
- John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 117(1), pages 30-64, March.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:26416. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.