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Foreign direct investment and gendered wages in urban China

Author

Listed:
  • Elissa Braunstein
  • Mark Brenner

Abstract

This paper documents the changing impact of foreign direct investment (FDI) on gendered wages in urban China. Combining household survey data from 1995 and 2002 with province-level macro-data, the paper finds that FDI as a proportion of investment has a sizable and statistically significant positive effect on both female and male wages in both years. In 1995, women experienced larger gains from FDI than men, but those gender-based advantages had reversed by 2002, with men experiencing larger wage gains from FDI than women. The paper argues that these results reflect the shift of foreign-invested enterprises to higher productivity and more domestically oriented production, a shift that interacts with gender-based employment segregation to more greatly advantage workers in male-dominated than female-dominated industries. These findings indicate that FDI can have considerable structural effects on economies that reach beyond the particular workers and firms linked to foreign investors.

Suggested Citation

  • Elissa Braunstein & Mark Brenner, 2007. "Foreign direct investment and gendered wages in urban China," Feminist Economics, Taylor & Francis Journals, vol. 13(3-4), pages 213-237.
    • Handle: RePEc:taf:femeco:v:13:y:2007:i:3-4:p:213-237
    DOI: 10.1080/13545700701439432
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    References listed on IDEAS

    as
    1. Chen Chunlai, 1997. "Comparison of Investment Behaviour of Source Countries in China," Chinese Economies Research Centre (CERC) Working Papers 1997-14, University of Adelaide, Chinese Economies Research Centre.
    2. Chen Chunlai, 1996. "Recent Developments in Foreign Direct Investment in China," Chinese Economies Research Centre (CERC) Working Papers 1996-03, University of Adelaide, Chinese Economies Research Centre.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    China; earnings differentials; foreign direct investment; trade liberalization; JEL Codes: F21; J7; O53;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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