Paying More to Hire the Best? Foreign Firms, Wages and Worker Mobility

Pedro Martins

No 3607, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In the context of the debate on the labour-market consequences of globalisation, we examine worker mobility in order to identify the wage differences between foreign and domestic firms. Using matched employer-employee panel data for Portugal, we consider virtually all spells of interfirm mobility over a period of ten years. We find that foreign firms offer significantly more generous wage policies, although there is also a (smaller) selection effect. The results are robust to the consideration of wage growth differences, the case of displaced workers and different subsets of workers.

Keywords: worker displacement; foreign direct investment; wage growth (search for similar items in EconPapers)
JEL-codes: F23 J31 J63 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2008-07
New Economics Papers: this item is included in nep-bec and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Economic Inquiry, 2011, 49 (2), 349–363

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Related works:
Journal Article: PAYING MORE TO HIRE THE BEST? FOREIGN FIRMS, WAGES, AND WORKER MOBILITY (2011)
Working Paper: Paying More to Hire the Best? Foreign Firms, Wages and Worker Mobility (2008)
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