The labor market effects of foreign-owned firms

No 3300, Policy Research Working Paper Series from The World Bank

Abstract: Foreign firms often have a more educated workforce and pay higher wages than domestic firms. This does not necessarily imply that foreign ownership translates into higher demand for educated workers or higher wages, since foreign investment may be guided by unobservable firm characteristics correlated with the demand for educated workers or wages. The author examines foreign acquisitions of domestic firms in Portugal in the 1990s and finds small changes in the workforce skill composition and wages following acquisition. Foreign investors"cherry pick"domestic firms that are already very similar to the group of existing foreign firms.

Keywords: Environmental Economics&Policies; Small and Medium Size Enterprises; Small Scale Enterprise; Labor Policies; Microfinance; Private Participation in Infrastructure; Small Scale Enterprise; Environmental Economics&Policies; Trade and Regional Integration; Microfinance (search for similar items in EconPapers)
Date: 2004-05-01
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The labor market effects of foreign owned firms (2007)
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