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The effect of foreign affiliate employment on wages, employment, and the wage share in Austria

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  • Onaran, Özlem

Abstract

This paper estimates the effects of outward Foreign Direct Investment (employment in the affiliates abroad) on employment, wages, and the wage share in Austria using panel data for the period of 1996-2005. There is evidence of significant negative effects of FDI on both employment and wages, and consequently on the wage share. The results are not limited to workers in low skilled sectors or blue collar workers. The negative employment effect is primarily due to the rise in the employment in the foreign affiliates in Eastern Euope. The negative wage effects are originating from affiliate employment in both the East and the developed countries in industry, but no effect is found in the total economy. (author´s abstract)

Suggested Citation

  • Onaran, Özlem, 2008. "The effect of foreign affiliate employment on wages, employment, and the wage share in Austria," Department of Economics Working Paper Series 314, WU Vienna University of Economics and Business.
  • Handle: RePEc:wiw:wus005:314
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    References listed on IDEAS

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    Cited by:

    1. Onaran, Özlem & Guschanski, Alexander, 2016. "The political economy of income distribution: industry level evidence from Austria," Greenwich Papers in Political Economy 15865, University of Greenwich, Greenwich Political Economy Research Centre.
    2. Alexander Guschanski & Özlem Onaran, 2018. "Determinants of the Wage Share: A Cross-country Comparison Using Sectoral Data," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(2), pages 44-54, July.

    More about this item

    Keywords

    Austria; FDI; wage; employment; labor share;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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