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Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: The Effect of FDI on Job Security
Author(s): Becker, Sascha
Muendler, Marc-Andreas
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Keywords: multinational enterprises
international investment
demand for labor
worker layoffs
linked employer-employee data
JEL Classifcation: F21, F23, J23, J63
Investments, Foreign
International business enterprises
Job security
Issue Date: Apr-2008
Date Deposited: 9-Oct-2009
Citation: Becker S & Muendler M (2008) The Effect of FDI on Job Security. BE Journal of Economic Analysis and Policy, 8 (1), p. Article 8.;
Abstract: Novel linked employer-employee data for multinational enterprises and their global workforces show that multinational enterprises that expand abroad retain more domestic jobs than competitors without foreign expansions. Propensity-score estimation demonstrates that the foreign expansion itself is a dominant explanatory factor for reduced worker separation rates. Bounding, concomitant variable tests, and further robustness checks show competing hypotheses to be less plausible. The finding is consistent with the hypothesis that, given global wage differences, a prevention of enterprises from outward FDI would lead to more domestic job losses. FDI raises domestic-worker retention more pronouncedly among highly educated workers.
DOI Link: 10.2202/1935-1682.1770
Rights: Published in The B.E. Journal of Economic Analysis & Policy. Copyright © 2008 The Berkeley Electronic Press.

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