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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 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.
Please use this url to cite or link to this publication:
author
and
publishing date
type
Contribution to journal
publication status
published
subject
keywords
FDI, Wages, Indonesia, F2, J3
in
Journal of Development 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
2022-03-17 01:37:22
@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}},
  keywords     = {{FDI; Wages; Indonesia; F2; J3}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{415--422}},
  publisher    = {{Elsevier}},
  series       = {{Journal of Development Economics}},
  title        = {{Foreign Direct Investment, Education, and Wages in Indonesian Manufacturing}},
  url          = {{http://dx.doi.org/10.1016/j.jdeveco.2002.12.004}},
  doi          = {{10.1016/j.jdeveco.2002.12.004}},
  volume       = {{73}},
  year         = {{2004}},
}