The effect of foreign affiliate employment on wages, employment, and the wage share in Austria

Ozlem Onaran

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

Abstract: This paper estimates the effects of outward Foreign Direct Investment (employment in the affiliates abroad) on employment, wages, and the wage share in Austria using panel data for the period of 1996-2005. There is evidence of significant negative effects of FDI on both employment and wages, and consequently on the wage share. The results are not limited to workers in low skilled sectors or blue collar workers. The negative employment effect is primarily due to the rise in the employment in the foreign affiliates in Eastern Euope. The negative wage effects are originating from affiliate employment in both the East and the developed countries in industry, but no effect is found in the total economy.

JEL-codes: F16 J23 J30 O52 (search for similar items in EconPapers)
Date: 2008-03
New Economics Papers: this item is included in nep-lab
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Related works:
Journal Article: The Effect of Foreign Affiliate Employment on Wages, Employment, and the Wage Share in Austria (2012)
Working Paper: The effect of foreign affiliate employment on wages, employment, and the wage share in Austria (2008)
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