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Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers Author info | Abstract | Publisher info | Download info | Related research | Statistics Pedro S. Martins
Luiz A. Esteves
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How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data. In order to control for unobserved worker differences, we examine both foreign acquisitions and divestments and worker mobility, including the joint estimation of firm and worker fixed effects. We find that changes in ownership do not tend to affect wages significantly, a result that holds both at the worker- and firm-levels. However, divestments are related to large job cuts, unlike acquisitions. On the other hand, movers from foreign to domestic firms take larger wage cuts than movers from domestic to foreign firms. Moreover, on average, the fixed effects of foreign firms are considerably larger than those of domestic firms, while worker selection effects are relatively small.
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Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number
15.
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Date of creation: Jun 2008Date of revision:
Handle: RePEc:cgs:wpaper:15Contact details of provider: Web page: http://www.busman.qmul.ac.uk/cgr/cgrindex.html More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Pedro S Martins).
Keywords: Foreign Direct Investment Ownership Changes Worker Mobility Other versions of this item:
Paper Martins, Pedro S. & Esteves, Luiz A., 2008.
"Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers ,"
IZA Discussion Papers
3542, Institute for the Study of Labor (IZA).
[Downloadable!] Pedro S. Martins & Luiz A. Esteves, 2008.
"Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers ,"
Working Papers
0076, Universidade Federal do Paraná, Department of Economics.
[Downloadable!] Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports :
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Labor and Demography
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Heyman, Fredrik & Sjöholm, Fredrik & Gustavsson Tingvall, Patrik, 2004.
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Working Paper Series
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"Is There Really A Foreign Ownership Wage Premium?Evidence From Matched Employer-Employee Data ,"
EIJS Working Paper Series
206, The European Institute of Japanese Studies.
[Downloadable!] Heyman, Fredrik & Gustavsson Tingvall, Patrik & Sjöholm, Fredrik, 2006.
"Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data ,"
Working Paper Series
674, Research Institute of Industrial Economics.
[Downloadable!] Heyman, Fredrik & Sjöholm, Fredrik & Gustavsson Tingvall, Patrik, 2006.
"Is There Really A Foreign Ownership Wage Premium? Evidence From Matched Employer-Employee Data ,"
EIJS Working Paper Series
230, The European Institute of Japanese Studies.
[Downloadable!] Pedro S. Martins & Luiz A. Esteves, 2006.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence from Brazil ,"
IZA Discussion Papers
2317, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Pedro Martins & Luiz Alberto Esteves, 2007.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence from Brazil ,"
Working Papers
0017, Universidade Federal do Paraná, Department of Economics.
[Downloadable!] Pedro S. Martins & Luiz A. Esteves, 2008.
"Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil ,"
Working Papers
14, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
[Downloadable!] Pedro S. Martins & Luiz Alberto Esteves, 2006.
"Is There Rent Sharing In Developing Countries? Matched-Panel Evidence From Brazil ,"
Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting]
158, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
[Downloadable!]
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Martins, Pedro S., 2008.
"Paying More to Hire the Best? Foreign Firms, Wages and Worker Mobility ,"
IZA Discussion Papers
3607, Institute for the Study of Labor (IZA).
[Downloadable!]
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