Does FDI Bring Good Jobs to Host Countries?

Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by FDI are good jobs, both from the worker's and the country's perspective. From the worker's perspe...

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Bibliographic Details
Main Author: Javorcik, Beata S.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
FDI
Online Access:http://documents.worldbank.org/curated/en/2014/06/20269544/fdi-bring-good-jobs-host-countries
http://hdl.handle.net/10986/20520
Description
Summary:Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by FDI are good jobs, both from the worker's and the country's perspective. From the worker's perspective, this is because such jobs are likely to pay higher wages than jobs in domestic firms, at least in developing countries, and because foreign employers tend to offer more training than local firms do. From the country s perspective, jobs in foreign affiliates are good jobs because FDI inflows tend to increase the aggregate productivity of the host country.