Arbeitspapier

Why do foreign-owned firms pay more? The role of on-the-job training

While foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers, the causes of this remain unresolved. In a two-period bargaining framework we show that if training is more productive and specific in foreign firms, foreign firm workers will have a steeper wage profile and thus acquire a premium over time. Using a rich employer-employee matched data set we verify that the foreign wage premium is only acquired by workers over time spent in the firm and only by those that receive on the job training, thus providing empirical support for a firm specific human capital acquisition explanation.

Language
Englisch

Bibliographic citation
Series: CEPR Discussion Paper Series ; No. 6171

Classification
Wirtschaft
Multinational Firms; International Business
Human Capital; Skills; Occupational Choice; Labor Productivity
Subject
Lohnniveau
Eigentümerstruktur
Multinationales Unternehmen
Berufsbegleitende Ausbildung
Verarbeitendes Gewerbe
Ghana

Event
Geistige Schöpfung
(who)
Görg, Holger
Strobl, Eric
Walsh, Frank A.
Event
Veröffentlichung
(who)
Centre for Economic Policy Research (CEPR)
(where)
London
(when)
2007

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Görg, Holger
  • Strobl, Eric
  • Walsh, Frank A.
  • Centre for Economic Policy Research (CEPR)

Time of origin

  • 2007

Other Objects (12)