FDI activity and worker compensation: evidence from U.S. non-manufacturing industries

Özlem Eren and James Peoples

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines worker compensation effects of foreign direct investment (FDI) activity in US non-manufacturing industry sectors. A clustered standard error correction is used when estimating wage and non-wage compensation equations, with special attention given to FDI’s effect by worker educational attainment and union status. Wage findings reveal that FDI activity is associated with a wage premium for highly educated non-union workers and with union rent erosion for all educational-gender groups excluding females with low educational attainment. Non-wage compensation analysis reveals FDI activity is generally associated with significantly higher probabilities of workers receiving employer financed non-wage compensation for union and non-union workers regardless of their level of educational attainment.

Keywords: FDI; labor; educational attainment; compensation; wage; non-manufacturing; union; healthcare; pension (search for similar items in EconPapers)
JEL-codes: F20 J3 (search for similar items in EconPapers)
Date: 2009-12
New Economics Papers: this item is included in nep-lab
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https://mpra.ub.uni-muenchen.de/26416/1/MPRA_paper_26416.pdf original version (application/pdf)

Related works:
Journal Article: FDI activity and worker compensation: evidence from US non-manufacturing industries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26416

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