MNEs and wages: The role of productivity spillovers and imperfect labor markets

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Saglam B., SAYEK BÖKE S.

ECONOMIC MODELLING, cilt.28, sa.6, ss.2736-2742, 2011 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 28 Sayı: 6
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1016/j.econmod.2011.06.029
  • Dergi Adı: ECONOMIC MODELLING
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.2736-2742
  • Anahtar Kelimeler: FDI spillovers, Wage spillovers, Imperfect labor markets, Firm wage premium, Wage dispersion, FOREIGN DIRECT-INVESTMENT, DOMESTIC FIRMS, BENEFIT, SEARCH
  • Hacettepe Üniversitesi Adresli: Evet

Özet

Disentangling the labor market implications of increased foreign capital flows remains important. This paper provides a unifying framework allowing to study the wage implications of multinational enterprise (MNE) activities, pointing to the importance of controlling for both labor market imperfections and productivity spillovers from foreign to local firms. Results show that increased MNE activities increase average wages in the local economy while contributing to a larger wage dispersion between the MNE and local firms. While the results pertaining to average wages depends heavily on the frictions in the labor market, how much the wage dispersion alters also depends on the extent of productivity spillovers from the MNEs to the local firms and the complementarity between domestic and foreign capital. (C) 2011 Elsevier B.V. All rights reserved.