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Greenfield Hires

Author

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  • Stefanie Haller

    (University College Dublin)

  • Doireann Fitzgerald

    (Federal Reserve Bank of Minneapolis)

  • Ragnhild Balsvik

    (Norwegian School of Economics)

Abstract

We investigate the possibility of short-run spillovers from foreign greenfield entry that work through the labor market. We first show that new hires at foreign-owned entrants are positively selected on observables, especially education. Moreover, conditional on observables, new hires to foreign-owned entrants earned a positive wage premium in their previous job, consistent with additional positive selection on unobservables. We do not find evidence that losing workers to a greenfield entrant generates wage spillovers for workers at sending plants. Although new hires at foreign-owned entrants are paid a wage premium, we also do not find evidence that foreign entry drive up wages for incumbents in a local labor market.

Suggested Citation

  • Stefanie Haller & Doireann Fitzgerald & Ragnhild Balsvik, 2017. "Greenfield Hires," 2017 Meeting Papers 963, Society for Economic Dynamics.
  • Handle: RePEc:red:sed017:963
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