volume 16, issue 3, P90-103 2000
DOI: 10.1093/oxrep/16.3.90
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N Driffield

Abstract: This paper presents a series of results concerning the labour market impact of inward FDI in the UK. The paper demonstrates that one of the crucial impacts of FDI is to increase earnings dispersion and the use of relatively more skilled labour in the domestic firms. This result is found to be a combination of two effects. Firstly, the entry by an MNE increases the demand for skilled workers in an industry or region, thus increasing wage dispersion. Secondly, technology spillovers occur from foreign to domestic…

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