The impact of foreign direct investment on wages and employment
Year: 1998
Type: article
Abstract: This paper studies the impact of foreign direct investment (FDI) on wages and employment When labor-management bargaining is industry-wide, two effects of FDI are identified; the collusion effect and the threat-point effect. It is shown that: (i) FDI always reduces the negotiated wage; (ii) FDI reduces union employment and the competitive wage if die union cares more about employment than wages or is equally concerned about employment and wages. However, if labor-mingement bargaining is firm-specific and unionization is industry-wide, then the above effects of FDI are substantially reduced.
Source: Oxford Economic Papers
Author: L. Zhao
Institution: Niigata University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2150024704