FDI and the Skill Premium : Evidence from Emerging Economies
Foreign direct investment may play an important role in transferring technologies from high-income to emerging economies, which can lead to uneven effects on the wages of skilled and unskilled workers. This paper combines project-level data on gree...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/987061539368430936/FDI-and-the-Skill-Premium-Evidence-from-Emerging-Economies http://hdl.handle.net/10986/30581 |
| Summary: | Foreign direct investment may play an
important role in transferring technologies from high-income
to emerging economies, which can lead to uneven effects on
the wages of skilled and unskilled workers. This paper
combines project-level data on greenfield foreign direct
investment with household surveys to estimate the effects of
foreign direct investment on the wage skill premium across
sectors and regions in seven emerging economies (Brazil,
Colombia, Ethiopia, Mexico, the Philippines, South Africa,
and Vietnam). The results suggest that foreign direct
investment is associated with a higher probability of
employment and higher wages for unskilled workers, relative
to skilled workers, in six of the seven countries analyzed
in this paper. Moreover, the effects of foreign direct
investment on wages are relatively larger for unskilled women. |
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