Foreign Direct Investment, Wage Inequality, And Skilled Labor Demand In EU Accession Countries

Topics:
Foreign Direct Investment
Tags:
Currency & Foreign Exchange,
Finance,
Foreign Direct Investment,
Foreign Direct Investment (FDI),
Investment,
Universita Bocconi,
Wage Inequality
Source:
Universita Bocconi

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Overview: During the 1990s Poland, Hungary and the Czech Republic have experienced rapid increases in wage inequality between skilled and unskilled workers and received the largest FDI (Foreign Direct Investment) inflow in Central and Eastern Europe. This paper analyzes whether FDI has contributed to the raise in earning inequality via a change in the skill composition of labor demand in the three countries. While we find that in Hungary and the Czech Republic FDI exerts a positive direct impact on the skill-premium, in none of the countries considered FDI has worsened wage inequality by favoring labor demand shifts.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 379KB | Date: Aug 2004 | Pages: 33


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