Abstract
This study provides micro-level evidence on the close link between foreign participation and wage inequality. We investigate the wage premium and the wage spillover effect of foreign-invested enterprises in the Chinese manufacturing sector. The results indicate a significant foreign premium in both wage and non-wage compensation. The presence of foreign and Hong Kong, Macao and Taiwan (HMT) investment results in a significantly negative spillover in terms the wage level in domestic firms, and discourages wage growth in such firms. Overall, the evidence suggests that exposure to foreign investment increases inter-enterprise wage inequality.
| Original language | English |
|---|---|
| Pages (from-to) | 1322-1332 |
| Number of pages | 11 |
| Journal | World Development |
| Volume | 39 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 1 Aug 2011 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- Asian
- China
- Globalization
- Inequality
- Wage
ASJC Scopus subject areas
- Economics and Econometrics
- Development
- Geography, Planning and Development
- Sociology and Political Science
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