 Does the skill intensity of the multinational enterprises matter for labor market outcomes?Iktisat Isletme ve Finans, 2010, vol. 25, issue 294, 9-34 Abstract: Abstract. This paper studies the labor market implications of high-tech versus low-tech foreign firms by using a heterogeneous matching model. This approach allows us to identify the effect of the different skill intensity of the foreign firm’s production on the wages of unskilled and skilled workers in the local firm. The analytical and the numerical solutions of the model reveal that both skill and firm premia depend on the cost of vacancy creation, the skill distribution in the local economy, and the technological gap between foreign and the local firms. Results of the paper suggest that increased foreign firm presence due to the reduction in the cost of foreign job creation leads to lower skill premium in high-tech foreign firm case but a higher skill premium in the low-tech foreign firm case. Further results point out that the firm premium increases as the vacancies posted by foreign firm increases, regardless of the skill intensity Keywords: Foreign direct investment; skill premium; matching models; labor markets. (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:25:y:2010:i:294:p:9-34 Ordering information: This journal article can be ordered from Access Statistics for this article Iktisat Isletme ve Finans is currently edited by Ali Bilge More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik |
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