Paying more to hire the best? Foreign firms, wages and worker mobility

Arbeitspapier

In the context of the debate on the labour-market consequences of globalisation, we examine worker mobility in order to identify the wage differences between foreign and domestic firms. Using matched employer-employee panel data for Portugal, we consider virtually all spells of interfirm mobility over a period of ten years. We find that foreign firms offer significantly more generous wage policies, although there is also a (smaller) selection effect. The results are robust to the consideration of wage growth differences, the case of displaced workers and different subsets of workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 3607

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials
• Subject: Foreign direct investment ; worker displacement ; wage growth ; Arbeitsmobilität ; Lohnstruktur ; Multinationales Unternehmen ; Unternehmen ; Portugal

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Martins, Pedro Silva
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/35189
• URN: urn:nbn:de:101:1-2008072929
• Last update: 10.03.2025, 11:45 AM CET