FDI activity and worker compensation: evidence from US non-manufacturing industries

Özlem Eren and James Peoples

Journal of Economics and Finance, 2013, vol. 37, issue 3, 319-338

Abstract: This study examines worker compensation effects of 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 an FDI-wage premium for highly educated non-union workers and FDI-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. Copyright Springer Science+Business Media, LLC 2013

Keywords: FDI; Labor Compensation; Non-Manufacturing Industries; Education; Union Premium (search for similar items in EconPapers)
Date: 2013
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Working Paper: FDI activity and worker compensation: evidence from U.S. non-manufacturing industries (2009)
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DOI: 10.1007/s12197-011-9185-8

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