Cross-border Investment, Heterogeneous Workers, and Employment Security – Evidence from Germany
We analyse how foreign direct investment (FDI) aff ects employment security using administrative micro data for German employees. FDI intensity is measured at the industry level, which enables us to take into account the sum of direct eff ects at the investing fi rms as well as indirect eff ects of FDI that stem from competitive eff ects, input-output linkages, technology spillovers, and changes in factor prices. We account for both inward and outward FDI, and diff erentiate these two types of FDI by source and destination region, respectively. We also investigate whether specifi c worker groups are aff ected diff erently by FDI. We fi nd that both inward and outward FDI at the industry level signifi cantly reduce employment security. This is particularly the case for inward FDI coming from the western part of the European Union, as well as for outward FDI going to Central and Eastern Europe. The eff ects are quantitatively small overall, but sizeable for some worker groups such as old and low-skilled workers.
|Date of creation:||Jul 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Hohenzollernstraße 1-3, 45128 Essen|
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
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.:
- Ronald Bachmann & Peggy David, 2009.
"The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics,"
SFB 649 Discussion Papers
SFB649DP2009-017, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Bachmann, Ronald & David, Peggy, 2010. "The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," IZA Discussion Papers 5358, Institute for the Study of Labor (IZA).
- Bachmann, Ronald & David, Peggy, 2009. "The Importance of Two-Sided Heterogeneity for the Cyclicality of Labour Market Dynamics," Ruhr Economic Papers 124, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Bachmann, Ronald & David, Peggy, 2009. "The importance of two-sided heterogeneity for the cyclicality of labour market dynamics," Technical Reports 2009,05, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
- Roger Bandick & Holger Görg, .
"Foreign Acquisitions, Plant Survival, and Employment Growth,"
09/13, University of Nottingham, GEP.
- Roger Bandick & Holger Görg, 2010. "Foreign acquisition, plant survival, and employment growth," Canadian Journal of Economics, Canadian Economics Association, vol. 43(2), pages 547-573, May.
- Bandick, Roger & Görg, Holger, 2009. "Foreign acquisition, plant survival, and employment growth," CEPR Discussion Papers 7329, C.E.P.R. Discussion Papers.
- Bandick, Roger & Görg, Holger, 2009. "Foreign Acquisition, Plant Survival, and Employment Growth," IZA Discussion Papers 4226, Institute for the Study of Labor (IZA).
- Roger Bandick & Holger Görg, 2009. "Foreign acquisition, plant survival, and employment growth," Kiel Working Papers 1525, Kiel Institute for the World Economy.
- Bandick, Roger & Görg, Holger, 2009. "Foreign acquisition, plant survival, and employment growth," Working Papers 09-10, University of Aarhus, Aarhus School of Business, Department of Economics.
- Bandick, Roger & Görg, Holger, 2009. "Foreign acquisition, plant survival, and employment growth," Working Papers 2009:9, Örebro University, School of Business.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Fors, Gunnar & Svensson, Roger, 2002. "R&D and foreign sales in Swedish multinationals: a simultaneous relationship?," Research Policy, Elsevier, vol. 31(1), pages 95-107, January.
- Robert C. Feenstra & Gene M. Grossman & Douglas A. Irwin (ed.), 1996. "The Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061864, December.
- Runjuan Liu & Daniel Trefler, 2008. "Much Ado About Nothing: American Jobs and the Rise of Service Outsourcing to China and India," NBER Working Papers 14061, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0268. 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: (Sabine Weiler)
If references are entirely missing, you can add them using this form.