Arbeitspapier
Labor Heterogeneity and the Risk of Expropriation in Less Developed Countries
Following the notion of skill-biased FDI fl ows from developed to less developed regions, high-skilled workers are likely to benefit from FDI to a larger extent. They earn a productivity advantage that potentially transfers into a skilled wage premium. This gives rise to distributional conflict that might turn into heterogeneous attitudes toward FDI inflows in line with skill. In this paper I study the eff ect of less developed countries' skill compositions on the risk of expropriation. Not surprisingly, it turns out that the risk of expropriation decreases with a larger employment share of high-skilled workers. However, in a theoretical model, the effect is diminishing and even turns negative in the empirical investigation: if the relative supply of high-skilled labor is too large, the skilled wage premium turns negative despite the skill-bias of FDI. Then, high-skilled workers' positive attitudes toward FDI vanish.
- ISBN
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978-3-86788-343-6
- Language
-
Englisch
- Bibliographic citation
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Series: Ruhr Economic Papers ; No. 298
- Classification
-
Wirtschaft
International Investment; Long-term Capital Movements
Positive Analysis of Policy Formulation and Implementation
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
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International investment
political economy
labor productivity
International investment
political economy
labor productivity
- Event
-
Geistige Schöpfung
- (who)
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an de Meulen, Philipp
- Event
-
Veröffentlichung
- (who)
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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
- (where)
-
Essen
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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
- an de Meulen, Philipp
- Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Time of origin
- 2011
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