WAGE SPILLOVERS IN INDIAN MANUFACTURING

G. Chidambaran Iyer ()
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G. Chidambaran Iyer: School of Social Sciences, National Institute of Advanced Studies, Indian Institute of Science Campus, Bangalore 560012, India

The Singapore Economic Review (SER), 2012, vol. 57, issue 01, 1-19

Abstract: The presence of foreign firms might lead to movement of skilled labor from domestic firms. To prevent such movement, domestic firms could increase their wages. Also, productivity spillovers from foreign firms may increase the productivity of domestic firms and possibly the wages given in domestic firms. In this paper, we try to answer whether the wages offered by domestic firms to their labor is affected by the presence of foreign firms. We carry out our analysis for an unbalanced firm-level panel dataset for 6 two-digit industries in Indian manufacturing. We find some evidence for positive wage spillover in three industries.

Keywords: Domestic firms; foreign firms; wage spillovers; F23; J31 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1142/S0217590812500063

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