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. doi:10.2202/1935-1682.1770

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Abstract

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
ISSN:	1935-1682
Official Date:	January 2008
Dates:	Date Event January 2008 Published
Volume:	Vol.8
Number:	No.1
Page Range:	Article no. 8
DOI:	10.2202/1935-1682.1770
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Funder:	Volkswagen-Stiftung, Ifo Institute

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