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Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries

Giovanni Bruno (), Anna M. Falzoni () and Rosario Crino ()
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Anna M. Falzoni: Department of Economics, University of Bergamo

No 501, Working Papers (-2012) from University of Bergamo, Department of Economics

Abstract: During the 1990s Poland, Hungary and the Czech Republic have experienced rapid increases in wage inequality between skilled and unskilled workers and received the largest FDI inflow in Central and Eastern Europe. This paper analyzes whether FDI has contributed to the raise in earning inequality via a change in the skill composition of labor demand in the three countries. While we find that in Hungary and the Czech Republic FDI exerts a positive direct impact on the skill-premium, in none of the countries considered FDI has worsened wage inequality by favoring labor demand shifts.

Keywords: Foreign direct investment; Labor demand; Wage inequality (search for similar items in EconPapers)
JEL-codes: F16 F23 J23 J31 (search for similar items in EconPapers)
Date: 2005
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Working Paper: Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries (2004) Downloads
Working Paper: Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries (2004) Downloads
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