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

Giovanni Bruno, Rosario Crinò and Anna M. Falzoni
Additional contact information
Rosario Crinò: CESPRI-Bocconi University
Anna M. Falzoni: University of Bergamo; CESPRI-Bocconi University
Authors registered in the RePEc Author Service: Rosario Crino ()

No 188, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

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: 2004-10-01
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries (2005)
Working Paper: Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:188

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