Foreign direct investment, education and wages in Indonesian manufacturing
- 1 February 2004
- journal article
- research article
- Published by Elsevier BV in Journal of Development Economics
- Vol. 73 (1), 415-422
- https://doi.org/10.1016/j.jdeveco.2002.12.004
Abstract
This paper examines whether the higher wages paid by foreign-owned manufacturing plants than by domestically owned plants, typical of most countries, represents a higher price for labor. That is, does it reflect a higher price for workers of a given quality, as represented by the level of education? We then ask whether foreign-owned plants pay a higher price for labor given the characteristics of the plants. Foreign-owned firms are found to pay a higher price for labor of a given educational level than domestically owned ones. Only a part of the difference is associated with plant characteristics, rather than ownership. (C) 2003 Published by Elsevier B.V.Keywords
This publication has 2 references indexed in Scilit:
- Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United StatesJournal of International Economics, 1996
- A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 1980