Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69447
Authors: 
Earle, John S.
Telegdy, Álmos
Antal, Gábor
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7095
Abstract: 
We estimate the wage effects of foreign direct investment (FDI) with universal firm-level and linked employer-employee panel data containing 4,926 foreign acquisitions in Hungary. Matching on pre-acquisition data and controlling for fixed effects for firms and detailed worker groups, we find 12-28 percent effects on average wages. The wage effect mostly reverses for 983 foreign acquisitions later divested to domestic owners. We find positive effects for all worker types, occupations, and wage quantiles. The evidence implies little role for either measurement problems or residual selection, but suggests a strong cross-firm association of FDI wage premia with similar differentials in productivity.
Subjects: 
foreign acquisitions
FDI
earnings
wage differentials
productivity
difference-in-differences matching
employer effects
Hungary
JEL: 
F23
F66
J31
Document Type: 
Working Paper

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