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Foreign Firms and Indonesian Manufacturing Wages : An Analysis with Panel Data

Sjöholm, Fredrik LU and Lipsey, Robert E. (2006) In Economic Development and Cultural Change 55(1). p.201-221
Abstract
This article examines the effect of foreign direct investment (FDI) on wages in Indonesian manufacturing. An econometric analysis of a panel of plants between 1975 and 1999 finds that both foreign ownership throughout the period and foreign takeover resulted in higher wages relative to domestically owned plants. The wage effects for white‐collar employees were typically around twice those for blue‐collar employees. The effect of foreign ownership on wages differed among sectors but was always positive.
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author
and
publishing date
type
Contribution to journal
publication status
published
subject
keywords
wages, workers' compensation, international business enterprises, manufacturing industries, foreign business enterprises, compensation management, labor costs, foreign corporations, foreign investments
in
Economic Development and Cultural Change
volume
55
issue
1
pages
21 pages
publisher
University of Chicago
external identifiers
  • scopus:33750547615
ISSN
0013-0079
DOI
10.1086/505723
language
English
LU publication?
no
id
7962b5a1-6040-4203-9a10-8f91746a8771
date added to LUP
2017-10-10 11:51:18
date last changed
2022-01-30 23:18:52
@article{7962b5a1-6040-4203-9a10-8f91746a8771,
  abstract     = {{This article examines the effect of foreign direct investment (FDI) on wages in Indonesian manufacturing. An econometric analysis of a panel of plants between 1975 and 1999 finds that both foreign ownership throughout the period and foreign takeover resulted in higher wages relative to domestically owned plants. The wage effects for white‐collar employees were typically around twice those for blue‐collar employees. The effect of foreign ownership on wages differed among sectors but was always positive.}},
  author       = {{Sjöholm, Fredrik and Lipsey, Robert E.}},
  issn         = {{0013-0079}},
  keywords     = {{wages; workers' compensation; international business enterprises; manufacturing industries; foreign business enterprises; compensation management; labor costs; foreign corporations; foreign investments}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{201--221}},
  publisher    = {{University of Chicago}},
  series       = {{Economic Development and Cultural Change}},
  title        = {{Foreign Firms and Indonesian Manufacturing Wages : An Analysis with Panel Data}},
  url          = {{http://dx.doi.org/10.1086/505723}},
  doi          = {{10.1086/505723}},
  volume       = {{55}},
  year         = {{2006}},
}