콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Macroeconomics

Print

Foreign direct investment, skills and wage inequality in East Asia

Related Document
Frame of Image
  • Foreign direct investment, skills and wage inequality in East Asia
  • Velde, Dirk Willem te; Morrissey, Oliver
  • Overseas Development Institute


Title Foreign direct investment, skills and wage inequality in East Asia
Similar Titles
Material Type Proceedings
Author(English)

Velde, Dirk Willem te; Morrissey, Oliver

Publisher

[London]:Overseas Development Institute

Date 2002
Pages 21
Subject Country Hong Kong(Asia and Pacific)
Philippines(Asia and Pacific)
Singapore(Asia and Pacific)
South Korea(Asia and Pacific)
Thailand(Asia and Pacific)
Language English
File Type Link
Subject Economy < Macroeconomics
Holding The Pennsylvania State University

Abstract

Foreign Direct Investment can affect the level and dispersion of wages, but there is a lack of empirical work in this area. This paper tests for the effects of FDI on wages and wage inequality in five East Asian countries. Wage inequality has been low and decreasing in some but not all East Asian countries. Using ILO data for wages and employment by occupation, we do not find strong evidence that FDI reduced wage inequality in five East Asian countries over the period 1985-1998. Instead, controlling for domestic influences (wage setting, supply of skills) we find that FDI has raised wage inequality in Thailand. Because we also find that FDI raises the wages for both skilled and low-skilled workers, our findings should help to move debate from impact (does FDI work for development) to appropriate policies to use FDI (how can we make FDI work for all). (the rest omitted)

User Note

Paper to be presented at DESG conference in Nottingham, April 2002