Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
The effect of foreign affiliate employment on wages, employment, and the wage share in Austria
Abstract: This paper estimates the effects of outward Foreign Direct
Investment (employment in the affiliates abroad) on employment, wages, and
the wage share in Austria using panel data for the period of 1996-2005.
There is evidence of significant negative effects of FDI on both employment
and wages, and consequently on the wage share. The results are not limited
to workers in low skilled sectors or blue collar workers. The negative
employment effect is primarily due to the rise in the employment in the
foreign affiliates in Eastern Euope. The negative wage effects are
originating from affiliate employment in both the East and the developed
countries in industry, but no effect is found in the total economy.
JEL-Codes: F16; J23; J30; O52; (follow links to similar papers)
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