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

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

Onaran, Özlem ORCID: 0000-0002-6345-9922 (2012) The effect of foreign affiliate employment on wages, employment, and the wage share in Austria. Review of Political Economy, 24 (2). pp. 251-271. ISSN 0953-8259 (Print), 1465-3982 (Online) (doi:https://doi.org/10.1080/09538259.2012.664335)

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Abstract

This paper estimates the effects of outward Foreign Direct Investment (employment in affiliates abroad) on employment, wages and the wage share in Austria using panel data for the period 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. The negative employment effect is mainly due to the rise in employment in the foreign affiliates in Eastern Europe. The negative wage effects originate from affiliate employment in both Eastern Europe and the developed countries in the industrial sector, but FDI in Eastern Europe has positive wage effects in the services sector due to possible scope effects.

Item Type: Article
Uncontrolled Keywords: foreign affiliate, employment, wages, wage share, Austria
Subjects: H Social Sciences > HF Commerce
Faculty / Department / Research Group: Faculty of Business
Related URLs:
Last Modified: 14 Oct 2016 09:22
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/8998

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