The effect of FDI on job security
Becker, Sascha O. and Muendler, Marc-Andreas. (2008) The effect of FDI on job security. The B.E. Journal of Economic Analysis & Policy, Vol.8 (No.1). Article no. 8. ISSN 1935-1682Full text not available from this repository.
Official URL: http://dx.doi.org/10.2202/1935-1682.1770
Novel linked employer-employee data for multinational enterprises and their global workforces show that multinational enterprises that expand abroad retain more domestic jobs than competitors without foreign expansions. Propensity-score estimation demonstrates that the foreign expansion itself is a dominant explanatory factor for reduced worker separation rates. Bounding, concomitant variable tests, and further robustness checks show competing hypotheses to be less plausible. The finding is consistent with the hypothesis that, given global wage differences, a prevention of enterprises from outward FDI would lead to more domestic job losses. FDI raises domestic-worker retention more pronouncedly among highly educated workers.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HB Economic Theory|
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||The B.E. Journal of Economic Analysis & Policy|
|Publisher:||Walter de Gruyter GmbH & Co. KG|
|Official Date:||January 2008|
|Page Range:||Article no. 8|
|Access rights to Published version:||Restricted or Subscription Access|
|Funder:||Volkswagen-Stiftung, Ifo Institute|
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