While foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers, the causes of this remain unresolved. In a two-period bargaining framework we show that if training is more productive and specific in foreign firms,...

This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local...

We estimate the wage penalty associated with working in the South African informal sector. To this end we use a rich data set on non-self-employed males that allows one to accurately distinguish workers employed in the informal sector from those employed in the formal sector and link individuals...