Foreign Direct Investment and Wage Inequality: Evidence from China
Summary This study provides micro-level evidence on the close link between foreign participation and wage inequality. We investigate the wage premium and the wage spillover effect of foreign-invested enterprises in the Chinese manufacturing sector. The results indicate a significant foreign premium in both wage and non-wage compensation. The presence of foreign and Hong Kong, Macao and Taiwan (HMT) investment results in a significantly negative spillover in terms the wage level in domestic firms, and discourages wage growth in such firms. Overall, the evidence suggests that exposure to foreign investment increases inter-enterprise wage inequality.
Year of publication: |
2011
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Authors: | Chen, Zhihong ; Ge, Ying ; Lai, Huiwen |
Published in: |
World Development. - Elsevier, ISSN 0305-750X. - Vol. 39.2011, 8, p. 1322-1332
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Publisher: |
Elsevier |
Subject: | wage inequality globalization Asian China |
Saved in:
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