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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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More papers in 2017 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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