time, the model predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers … experience contributes more to local firms' than to MNEs' productivity. In this case, experienced MNE workers are hired by …

The process of matching between firms and workers is an important mechanism in determining the distribution of wages …. In a labor market characterised by large dispersion of workers' productivity and worker-firm complementarity, high …, and is associated with higher average productivity and firm profits, but also with higher wage dispersion. We also show …