Demand for skilled labour from multinational firms is also high which might lead to movement of skilled labour from domestic firms. To prevent such movement domestic firms might feel the pressure to increase their wages. Also, productivity spillovers from foreign firms may increase productivity...

This paper examines the differential effects, based on the size of the plant, of industry-level foreign direct investment (FDI) on plant-level employment and the wages of skilled and unskilled workers in India's manufacturing sector. On average, there are strong positive differential effects of...

This paper is related to the literature on the effect of foreign direct investment (FDI) on the labour market of host countries. Labour market literature has focused on the demand side of FDI; that is, increasing wage inequality by demanding more skilled workers or just increasing the overall...