|Appears in Collections:
|Economics Journal Articles
|Peer Review Status:
|The Effect of FDI on Job Security
demand for labor
linked employer-employee data
JEL Classifcation: F21, F23, J23, J63
International business enterprises
|Becker S & Muendler M (2008) The Effect of FDI on Job Security. BE Journal of Economic Analysis and Policy, 8 (1), p. Article 8. http://www.bepress.com/bejeap/vol8/iss1/art8/#; https://doi.org/10.2202/1935-1682.1770
|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.
|Published in The B.E. Journal of Economic Analysis & Policy. Copyright © 2008 The Berkeley Electronic Press.
|Becker Muendler 2008 BEJEAP-Advances The Effect of FDI on Job Security.pdf
|Fulltext - Published Version
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