Foreign Ownership and Wages
Evidence from Hungary, 1986-2008
Bibliographic Data
| ID | 3148596 |
|---|---|
| Authors | John S Earle (0000-0001-8507-6685), Álmos Telegdy (0000-0003-4651-5280), Gábor Antal (0000-0002-3002-8624, George Mason University) |
| Year | 2018 |
| Volume | 71 |
| Issue | 2 |
| Pages | 458-491 |
| Publication date | 2018-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/0019793917700087 |
| OpenAlex | W3125578567 |
| Language | EN |
| Citations received | 4 |
| References cited | 49 |
This article estimates the wage effects of foreign direct investment (FDI) using firm-level and linked employer-employee panel data containing a large number of foreign acquisitions over a long period of rapid development in Hungary. Matching on pre-acquisition data, the authors find that much of the raw foreign wage premium represents selection bias, but that foreign acquisition nevertheless raises average wages by 15 to 29% when controlling for fixed effects for firms and highly detailed worker groups, and by 6% with firm-worker match effects. Acquired firms that are later divested to domestic owners experience a substantial reversal of the positive acquisition effect. No type of worker-defined by education, experience, gender, incumbency, and occupational group-experiences wage decline, but the patterns suggest skill bias in the gains from acquisition. The evidence implies a strong cross-firm correlation of FDI wage and productivity differentials, and an inverse relationship between FDI effects and economic development level of the sending country relative to Hungary
Business · Demographic economics · Econometrics · Economics · Foreign direct investment · Foreign ownership · Investment (military) · Labour economics · Macroeconomics · Matching (statistics) · Panel data · Productivity · Selection bias · Wage · Economic Policies and Impacts · Global trade and economics · International Business and FDI
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| Unique citing works | 4 |
|---|---|
| Citations per year | 0,57 |
| Citation span | 2019 - 2022 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |