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Paying More to Hire the Best? Foreign Firms, Wages and Worker Mobility Author info | Abstract | Publisher info | Download info | Related research | Statistics Pedro S. Martins
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In the context of the debate on the labour-market consequences of globalisation, we examine worker mobility in order to identify the wage differences between foreign and domestic firms. Using matched employer-employee panel data for Portugal, we consider virtually all spells of interfirm mobility over a period of ten years. We find that foreign firms offer significantly more generous wage policies, although there is also a (smaller) selection effect. The results are robust to the consideration of wage growth differences, the case of displaced workers and different subsets of workers.
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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
17.
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Date of creation: Jul 2008Date of revision:
Handle: RePEc:cgs:wpaper:17Contact 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 Worker Displacement Wage Growth Other versions of this item:
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 :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: 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!]
Other versions:
Pedro S. Martins & Luiz A. Esteves, 2008.
"Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers ,"
Working Papers
15, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
[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!] Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001.
"Foreign direct investment and spillovers through workers' mobility ,"
Journal of International Economics ,
Elsevier, vol. 53(1), pages 205-222, February.
[Downloadable!] (restricted)
Other versions:
Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 1999.
"Foreign Direct Investment and Spillovers through Workers' Mobility ,"
CEPR Discussion Papers
2194, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Andrea Fosfuri & Massimo Motta & Thomas Ronde, 1998.
"Foreign Direct Investments and Spillovers through Workers' Mobility ,"
Economics Working Papers
258, Department of Economics and Business, Universitat Pompeu Fabra.
[Downloadable!] Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993.
"Earnings Losses of Displaced Workers ,"
American Economic Review ,
American Economic Association, vol. 83(4), pages 685-709, September.
[Downloadable!] (restricted)
Other versions: Melissa Bjelland & Bruce Fallick & John Haltiwanger & Erika McEntarfer, 2007.
"Employer-to-employer flows in the United States: estimates using linked employer-employee data ,"
Finance and Economics Discussion Series
2007-30, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Pedro S. Martins, 2004.
"Do Foreign Firms Really Pay Higher Wages? : Evidence from Different Estimators ,"
CRIEFF Discussion Papers
0409, Centre for Research into Industry, Enterprise, Finance and the Firm.
[Downloadable!]
Other versions: Pedro S. Martins, 2007.
"Heterogeneity In Real Wage Cyclicality ,"
Scottish Journal of Political Economy ,
Scottish Economic Society, vol. 54(5), pages 684-698, November.
[Downloadable!] (restricted)
Other versions: Martyn Andrews, & Lutz Bellmann, & Thorsten Schank, & Richard Upward, .
"The takeover and selection effects of foreign ownership in Germany: an analysis using linked worker-firm data ,"
Discussion Papers
07/08, University of Nottingham, GEP.
[Downloadable!]
John M. Abowd & Francis Kramarz & David N. Margolis, 1999.
"High Wage Workers and High Wage Firms ,"
Econometrica ,
Econometric Society, vol. 67(2), pages 251-334, March.
Other versions:
Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High-Wage Workers and High-Wage Firms ,"
CIRANO Working Papers
94s-23, CIRANO.
[Downloadable!] Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995.
"High-Wage Workers and High-Wage Firms ,"
Cahiers de recherche
9503, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] John M. Abowd & Francis Kramarz & David N. Margolis, 1994.
"High Wage Workers and High Wage Firms ,"
NBER Working Papers
4917, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Eric J. Bartelsman & Mark Doms, 2000.
"Understanding productivity: lessons from longitudinal microdata ,"
Finance and Economics Discussion Series
2000-19, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Beata Smarzynska Javorcik, 2004.
"Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages ,"
American Economic Review ,
American Economic Association, vol. 94(3), pages 605-627, June.
[Downloadable!]
Other versions: Feenstra, Robert C. & Hanson, Gordon H., 1997.
"Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras ,"
Journal of International Economics ,
Elsevier, vol. 42(3-4), pages 371-393, May.
[Downloadable!] (restricted)
Other versions: Heyman, Fredrik & Sjoholm, Fredrik & Tingvall, Patrik Gustavsson, 2007.
"Is there really a foreign ownership wage premium? Evidence from matched employer-employee data ,"
Journal of International Economics ,
Elsevier, vol. 73(2), pages 355-376, November.
[Downloadable!] (restricted)
Other versions:
Heyman, Fredrik & Sjöholm, Fredrik & Gustavsson Tingvall, Patrik, 2004.
"Is there Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data ,"
Working Paper Series
199, Trade Union Institute for Economic Research.
[Downloadable!] Heyman, Fredrik & Sjöholm, Fredrik & Gustavsson Tingvall, Patrik, 2004.
"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!]
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