Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203964 
Year of Publication: 
2013
Series/Report no.: 
wiiw Working Paper No. 99
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
Abstract In this paper we examine whether foreign-owned firms pay higher wages and have higher levels of employment than domestically-owned firms in a cross-section of sub-Saharan African (SSA) firms using data from 19 SSA countries. We also test for the presence of wage spillovers, examining whether the wages offered by foreign-owned firms in an industry impact upon the wages paid by domestically-owned firms. Our results indicate that foreign-owned firms tend to pay higher average wages, employ more workers and generate positive human capital effects. This tends to be true for total employment and average wages for all workers as well as for blue- and white-collar workers separately. The effects of foreign ownership tend to be stronger for white-collar workers when considering wages and for blue-collar workers when considering employment. Our results also suggest that the presence of foreign-owned firms does not significantly impact upon the wages paid by domestically-owned firms however.
Subjects: 
foreign ownership
employment
wage premium
JEL: 
J21
J31
F23
Document Type: 
Working Paper

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