Greenfield Hires

Stefanie Haller, Doireann Fitzgerald and Ragnhild Balsvik

No 963, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We investigate the possibility of short-run spillovers from foreign greenfield entry that work through the labor market. We first show that new hires at foreign-owned entrants are positively selected on observables, especially education. Moreover, conditional on observables, new hires to foreign-owned entrants earned a positive wage premium in their previous job, consistent with additional positive selection on unobservables. We do not find evidence that losing workers to a greenfield entrant generates wage spillovers for workers at sending plants. Although new hires at foreign-owned entrants are paid a wage premium, we also do not find evidence that foreign entry drive up wages for incumbents in a local labor market.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:963

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