Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/2877
Authors: 
Görg, Holger
Strobl, Eric
Walsh, Frank A.
Year of Publication: 
2002
Series/Report no.: 
IZA Discussion paper series 590
Abstract: 
Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue still remains unresolved. In a multi-period bargaining framework we show that if firm specific training is more productive in foreign firms, foreign firm workers will have a steeper wage profile and thus acquire a premium over time. Using a rich employeremployee matched data set we show that the foreign wage premium is only acquired by workers over time spent in the firm and only by those that receive on the job training, thus providing empirical support for a firm specific human capital acquisition explanation.
Subjects: 
foreign firms
wages
on-the-job training
JEL: 
F23
J24
Document Type: 
Working Paper

Files in This Item:
File
Size
573.92 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.