IDEAS home Printed from https://ideas.repec.org/a/ris/eaerev/0046.html
   My bibliography  Save this article

The Impact of Outward FDI on the South Korean Labor Market: Evidence on the Wages of Four Types of Workers

Author

Listed:
  • Lee, Hongshik

    (Korea University)

  • Kim, Hongmin

    (Korea University)

  • Sim, Soonhyung

    (Korea University)

Abstract

The purpose of this research is to identify the relation between OFDI (Outward Foreign Direct Investment) and wage inequality. In order to analyze various effects of OFDI on wages depending on the types of workers, the research classified laborers into four categories: permanent/skilled worker, permanent/unskilled worker, temporary/skilled worker, and temporary/unskilled worker. With controlling wage- determining factors such as education, labor union, individual fixed-effect, and industry-level effect, this paper examines whether OFDI attributes to the wage inequality among each type of workers. Moreover, this study also analyzes possible effects on wages that could vary according to the different characteristics of investments by classifying OFDI into two groups: OECD and non-OECD. The results reveal that OFDI makes certain differences according to skill-intensity and contract type in terms of influences on wages. It also shows that the effect of OFDI on wages is more subject to contract type than to skill-intensity. The classification of OFDI into OECD and non-OECD proves that effects on wages can vary by characteristics of the subject of investment.

Suggested Citation

  • Lee, Hongshik & Kim, Hongmin & Sim, Soonhyung, 2014. "The Impact of Outward FDI on the South Korean Labor Market: Evidence on the Wages of Four Types of Workers," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 18(1), pages 29-54, March.
    • Handle: RePEc:ris:eaerev:0046
    DOI: 10.11644/KIEP.JEAI.2014.18.1.274
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.11644/KIEP.JEAI.2014.18.1.274
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.11644/KIEP.JEAI.2014.18.1.274?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cui, Lin & Gao, Qiuling & Guo, Jinyu & Ma, Pengcheng, 2022. "OFDI performance of EMNEs: A review and recommendations for future research," Journal of International Management, Elsevier, vol. 28(3).

    More about this item

    Keywords

    FDI; Skill-intensity; Contract Types; Wage Inequality;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:eaerev:0046. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JE Lee (email available below). General contact details of provider: https://edirc.repec.org/data/kieppkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.