Foreign Ownership and Labour Markets in Sub-Saharan African Firms

Neil Foster-McGregor, Anders Isaksson and Florian Kaulich

No 99, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: Abstract In this paper we examine whether foreign-owned firms pay higher wages and have higher levels of employment than domestically-owned firms in a cross-section of sub-Saharan African (SSA) firms using data from 19 SSA countries. We also test for the presence of wage spillovers, examining whether the wages offered by foreign-owned firms in an industry impact upon the wages paid by domestically-owned firms. Our results indicate that foreign-owned firms tend to pay higher average wages, employ more workers and generate positive human capital effects. This tends to be true for total employment and average wages for all workers as well as for blue- and white-collar workers separately. The effects of foreign ownership tend to be stronger for white-collar workers when considering wages and for blue-collar workers when considering employment. Our results also suggest that the presence of foreign-owned firms does not significantly impact upon the wages paid by domestically-owned firms however.

Keywords: foreign ownership; employment; wage premium (search for similar items in EconPapers)
JEL-codes: F23 J21 J31 (search for similar items in EconPapers)
Pages: 34 pages including 11 Tables and 3 Figures
Date: 2013-03
New Economics Papers: this item is included in nep-afr and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as wiiw Working Paper

Downloads: (external link)
https://wiiw.ac.at/foreign-ownership-and-labour-ma ... n-firms-dlp-2994.pdf (application/pdf)

Related works:
Journal Article: Foreign Ownership and Labour in Sub‐Saharan African Firms (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wii:wpaper:99

Ordering information: This working paper can be ordered from
https://wiiw.ac.at

Access Statistics for this paper

More papers in wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw Contact information at EDIRC.
Bibliographic data for series maintained by Customer service (customerservice@wiiw.ac.at).