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FDI activity and worker compensation: evidence from US non-manufacturing industries

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  • Özlem Eren
  • James Peoples

Abstract

This study examines worker compensation effects of FDI activity in US non-manufacturing industry sectors. A clustered standard error correction is used when estimating wage and non-wage compensation equations, with special attention given to FDI’s effect by worker educational attainment and union status. Wage findings reveal an FDI-wage premium for highly educated non-union workers and FDI-union rent erosion for all educational-gender groups excluding females with low educational attainment. Non-wage compensation analysis reveals FDI activity is generally associated with significantly higher probabilities of workers receiving employer financed non-wage compensation for union and non-union workers regardless of their level of educational attainment. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Özlem Eren & James Peoples, 2013. "FDI activity and worker compensation: evidence from US non-manufacturing industries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 37(3), pages 319-338, July.
    • Handle: RePEc:spr:jecfin:v:37:y:2013:i:3:p:319-338
    DOI: 10.1007/s12197-011-9185-8
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    More about this item

    Keywords

    FDI; Labor Compensation; Non-Manufacturing Industries; Education; Union Premium;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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