This paper extends the existing literature on FDI and wage inequality. We do this in two ways. Firstly, we incorporate more precise measures of inward investment into the model, by allowing for differences in the effects between horizontal and vertical FDI. Secondly, after establishing the...

Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to Mexico leads to an increase in the skill premium in both the US and Mexico. In this paper we show on the example of Austria and Poland that with the new international division...

Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to Mexico leads to an increase in the skill premium in both the US and Mexico. In this paper we show on the example of Austria and Poland that with the new international division...

We estimate the effects of foreign direct investment (FDI) acquisitions on firm-average and worker-specific wages using universal firm-level panel data and linked employer-employee data for Hungary. Our identification strategy exploits a 23 year-long panel with 4,926 foreign acquisitions to...

We estimate the wage effects of foreign direct investment (FDI) with universal firm-level and linked employer-employee panel data containing 4,926 foreign acquisitions in Hungary. Matching on pre-acquisition data and controlling for fixed effects for firms and detailed worker groups, we find...

We analyze the effect of rising protectionism towards foreign direct investment (FDI) on domestic employment, exploiting revisions in Indonesia’s highly-granular negative investment list, and spatial variation in the exposure of the manufacturing sector to these investment restrictions. Rising...

We investigate differences in gender wage gaps between foreign-owned and domestically-owned firms in Poland, a country that has experienced large FDI inflows over the past three decades. In line with the findings of several other studies, we show that according to standard estimates of adjusted...

We use a panel of more than 100 countries for the period 1980 to 2002 to analyse the relationship between inward foreign direct investment (FDI) and wage inequality. We particularly check whether this relationship is non-linear, in line with a theoretical discussion. We find that the effect of...

We decompose the wage premium after foreign acquisitions of Dutch domestic firms into the constituent firm- and worker-level premia. Firm-level premia grow up to 3.5%, accounting for the majority of the acquisition premium. Worker-level premia by contrast, grow up to 1% and only materialize with...

This paper investigates sources and determinants of foreign direct investment (FDI) flows to developing Asia using bilateral FDI flows for the period 1990-2005. The Triad (composed of Japan, EU, and the US) has accounted for about 35-40% of FDI inflows to developing Asia in recent years, with...