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Foreign Direct Investment, Education, and Wages in Indonesian Manufacturing

Lipsey, Robert E and Sjöholm, Fredrik LU (2004) In Journal of Development of Economics 73(1). p.415-422
Abstract
This paper examines whether the higher wages paid by foreign-owned manufacturing plants than by domestically owned plants, typical of most countries, represents a higher price for labor. That is, does it reflect a higher price for workers of a given quality, as represented by the level of education? We then ask whether foreign-owned plants pay a higher price for labor given the characteristics of the plants. Foreign-owned firms are found to pay a higher price for labor of a given educational level than domestically owned ones. Only a part of the difference is associated with plant characteristics, rather than ownership.
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
FDI, Wages, Indonesia, F2, J3
in
Journal of Development of Economics
volume
73
issue
1
pages
8 pages
publisher
Elsevier
external identifiers
  • scopus:0942289029
ISSN
0304-3878
DOI
10.1016/j.jdeveco.2002.12.004
language
English
LU publication?
no
id
9a1a0e41-6bfa-42d9-8674-ff0307d20041
date added to LUP
2017-10-10 17:40:10
date last changed
2017-11-19 04:43:34
@article{9a1a0e41-6bfa-42d9-8674-ff0307d20041,
  abstract     = {This paper examines whether the higher wages paid by foreign-owned manufacturing plants than by domestically owned plants, typical of most countries, represents a higher price for labor. That is, does it reflect a higher price for workers of a given quality, as represented by the level of education? We then ask whether foreign-owned plants pay a higher price for labor given the characteristics of the plants. Foreign-owned firms are found to pay a higher price for labor of a given educational level than domestically owned ones. Only a part of the difference is associated with plant characteristics, rather than ownership.},
  author       = {Lipsey, Robert E and Sjöholm, Fredrik},
  issn         = {0304-3878},
  keyword      = {FDI,Wages,Indonesia,F2,J3},
  language     = {eng},
  number       = {1},
  pages        = {415--422},
  publisher    = {Elsevier},
  series       = {Journal of Development of Economics},
  title        = {Foreign Direct Investment, Education, and Wages in Indonesian Manufacturing},
  url          = {http://dx.doi.org/10.1016/j.jdeveco.2002.12.004},
  volume       = {73},
  year         = {2004},
}