Arbeitspapier
Why do foreign-owned-firms pay more? The role of on-the-job training
Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue still remains unresolved. In a multi-period bargaining framework we show that if firm specific training is more productive in foreign firms, foreign firm workers will have a steeper wage profile and thus acquire a premium over time. Using a rich employeremployee matched data set we show 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: IZA Discussion Papers ; No. 590
- Classification
-
Wirtschaft
Multinational Firms; International Business
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
-
foreign firms
wages
on-the-job training
Lohnniveau
Eigentümerstruktur
Multinationales Unternehmen
Berufsbegleitende Ausbildung
Verarbeitendes Gewerbe
Ghana
- Event
-
Geistige Schöpfung
- (who)
-
Görg, Holger
Strobl, Eric
Walsh, Frank A.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2002
- Handle
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
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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.
- Institute for the Study of Labor (IZA)
Time of origin
- 2002
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Footloose multinationals?
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