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...

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Main Authors:	Cruz, Marcio, Nayyar, Gaurav, Toews, Gerhard, Vezina, Pierre-Louis
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	FOREIGN DIRECT INVESTMENT SKILL PREMIUM LABOR SKILLS UNSKILLED LABOR EMERGING MARKET ECONOMIES WAGE INEQUALITY
Online Access:	http://documents.worldbank.org/curated/en/987061539368430936/FDI-and-the-Skill-Premium-Evidence-from-Emerging-Economies http://hdl.handle.net/10986/30581

id	okr-10986-30581
recordtype	oai_dc
spelling	okr-10986-305812021-06-08T14:42:48Z FDI and the Skill Premium : Evidence from Emerging Economies Cruz, Marcio Nayyar, Gaurav Toews, Gerhard Vezina, Pierre-Louis FOREIGN DIRECT INVESTMENT SKILL PREMIUM LABOR SKILLS UNSKILLED LABOR EMERGING MARKET ECONOMIES WAGE INEQUALITY 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. 2018-10-16T20:33:40Z 2018-10-16T20:33:40Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/987061539368430936/FDI-and-the-Skill-Premium-Evidence-from-Emerging-Economies http://hdl.handle.net/10986/30581 English Policy Research Working Paper;No. 8613 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa East Asia and Pacific Latin America & Caribbean Brazil Colombia Ethiopia Mexico Philippines South Africa Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FOREIGN DIRECT INVESTMENT SKILL PREMIUM LABOR SKILLS UNSKILLED LABOR EMERGING MARKET ECONOMIES WAGE INEQUALITY
spellingShingle	FOREIGN DIRECT INVESTMENT SKILL PREMIUM LABOR SKILLS UNSKILLED LABOR EMERGING MARKET ECONOMIES WAGE INEQUALITY Cruz, Marcio Nayyar, Gaurav Toews, Gerhard Vezina, Pierre-Louis FDI and the Skill Premium : Evidence from Emerging Economies
geographic_facet	Africa East Asia and Pacific Latin America & Caribbean Brazil Colombia Ethiopia Mexico Philippines South Africa Vietnam
relation	Policy Research Working Paper;No. 8613
description	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.
format	Working Paper
author	Cruz, Marcio Nayyar, Gaurav Toews, Gerhard Vezina, Pierre-Louis
author_facet	Cruz, Marcio Nayyar, Gaurav Toews, Gerhard Vezina, Pierre-Louis
author_sort	Cruz, Marcio
title	FDI and the Skill Premium : Evidence from Emerging Economies
title_short	FDI and the Skill Premium : Evidence from Emerging Economies
title_full	FDI and the Skill Premium : Evidence from Emerging Economies
title_fullStr	FDI and the Skill Premium : Evidence from Emerging Economies
title_full_unstemmed	FDI and the Skill Premium : Evidence from Emerging Economies
title_sort	fdi and the skill premium : evidence from emerging economies
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/987061539368430936/FDI-and-the-Skill-Premium-Evidence-from-Emerging-Economies http://hdl.handle.net/10986/30581
_version_	1764472427689017344

FDI and the Skill Premium : Evidence from Emerging Economies

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