Urban and Regional Economics Seminars
FDI connections: Wage and productivity effects
Dave Mare (MOTU & SERC)
Friday 07 March 2014 13:00 - 14:30
32L 2.04, 2nd Floor Conference Room, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH
About this event
Foreign Direct Investment provides a bridge between locations, providing a potential conduit for productive interactions or knowledge transfer across space. This may be a particularly valuable source of productivity growth for small and remote regions. We estimate the impact of foreign ownership on employee wages and on the productivity of domestically owned firms, using a rich longitudinally-linked employer-employee dataset from New Zealand, containing job level information as well as firm performance data spanning over a decade. Foreign firms pay higher wages and wage growth but the premium is not retained by workers when they leave the firm. Foreign firms are also more productive but we find little evidence of positive spillover effects from FDI to the productivity of domestically-owned firms.
This event will take place in 32L 2.04, 2nd Floor Conference Room, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.The building is labelled on the map.
This series is part of the CEP's Urban and spatial programme.