The Labor Market Effects of FDI: A Panel Data Evidence from Mexico

Sharma, Amarendra; Cárdenas, Oscar

doi:10.1080/10168737.2018.1547322

Cited by 6 publications

(6 citation statements)

References 21 publications

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“…By and large, FDI was associated with higher average wages, both for skilled and unskilled workers, in FDI-recipient municipalities and industries. This is in line with previous findings for Mexico (Aitken et al, 1996;Sharma & Cardenas, 2018;Villarreal & Sakamoto, 2011).…”

Section: Discussion Of Resultssupporting

confidence: 94%

“…By and large, FDI was associated with higher average wages, both for skilled and unskilled workers, in FDI‐recipient municipalities and industries. This is in line with previous findings for Mexico (Aitken et al, 1996; Sharma & Cardenas, 2018; Villarreal & Sakamoto, 2011). Nonetheless, in some instances the FDI effects are statistically insignificant, as suggested by others (e.g., Saucedo et al, 2020; Waldkirch, 2010).…”

Section: Analysis and Discussionsupporting

confidence: 93%

“…They also found evidence of positive wage spillovers as domestic firms increased their wages in labour markets with higher MNE presence. By the same token, Sharma and Cardenas (2018) show that FDI had a positive correlation with regional average hourly wages in Mexico (between 2005 and 2015). Conversely, Waldkirch (2010) discovered either negative or no effect of FDI on average wages in Mexican industrial sectors during the period 1994–2004, while Kato‐Vidal (2013) reports a negative effect of FDI on overall wages across Mexican regions between 1993 and 2010.…”

Section: Fdi and Wage Inequality: Theory And Evidencementioning

confidence: 95%

“…For evidence in developing countries, see the cases of Brazil (Arbache, 2004), Indonesia (Lipsey & Sjöholm, 2004), Venezuela (Aitken et al, 1996), East Asian countries (Te Velde & Morrissey, 2004), and Sub-Saharan Africa (Coniglio et al, 2015). Cardenas (2018) show that FDI had a positive correlation with regional average hourly wages in Mexico (between 2005 and2015). Conversely, Waldkirch (2010) discovered either negative or no effect of FDI on average wages in Mexican industrial sectors during the period 1994-2004, while Kato-Vidal (2013) reports a negative effect of FDI on overall wages across Mexican regions between 1993 and 2010.…”

Section: Fdi and Wage Inequality: Theory And Evidencementioning

confidence: 99%

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FDI and the growing wage gap in Mexican municipalities

Ibarra-Olivo

Rodríguez‐Pose

2022

Papers in Regional Science

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Inward foreign direct investment (FDI) has generally been linked to higher wages, but evidence remains sparse on the overall effects of FDI on average wages, the wage gap between skilled and unskilled labour, and inter-industry heterogeneity. We address these issues for Mexican municipalities and industries for a period of increasing FDI and sectoral change that saw growing wage inequality. By combining two non-experimental techniques we find that FDI in Mexico was associated with higher wages, mostly for skilled workers-but also for unskilled ones-and a widening gap between them. Effects vary both between and within industries depending on location, and they either wax or wane when the initial or incremental effects are considered.

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Section: Discussion Of Resultssupporting

confidence: 94%

Section: Analysis and Discussionsupporting

confidence: 93%

Section: Fdi and Wage Inequality: Theory And Evidencementioning

confidence: 95%

Section: Fdi and Wage Inequality: Theory And Evidencementioning

confidence: 99%

See 2 more Smart Citations

FDI and the growing wage gap in Mexican municipalities

Ibarra-Olivo

Rodríguez‐Pose

2022

Papers in Regional Science

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“…According to the economics literature, the value of inward direct investments is expected to reduce the unemployment rate (Abor & Harvey, 2008;Chang, 2007;Sharma & Cardenas, 2019). Therefore, a negative correlation between the unemployment rate and FDI is expected in the analysis.…”

Section: Dataset Variables and Econometric Modelmentioning

confidence: 99%

Geleceğin İşgücü İçin Teknolojinin Yükselişi: OECD Ülkelerinde Teknoloji ve İşsizlik Arasındaki Bağlantı

Dağlı¹

2022

Çalışma Ve Toplum

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This paper studies the impact of technology on unemployment, focusing on OECD countries. Obviously, there is no consensus in the literature about the future impacts of technological breakthroughs on employment. The clear point is that the current skills will not match the occupations of the future and the companies will need many new skills. Technological advances will create millions of jobs but the other millions of jobs will disappear in this process. The purpose of this paper is to point out the ultimate impact of technology on unemployment at the macro level, which is quite insufficient quantitatively, related to the impact of technology on employment. In this paper, the nexus between technology and unemployment has been analyzed with S-GMM estimator in 33 OECD member countries for the years 2005-2018. According to panel data analysis, it is seen that all the control variables but GDP are statistically significant. The independent variable, IP5 patents representing technology is statistically highly significant and has a negative correlation with the dependent variable. The empirical results show that a 1% increase in technology reduces unemployment by 0.07%.

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Foreign direct investment and employments in Asia Pacific nations: The moderating role of labor quality

Nguyen,

Le,

et al. 2024

Heliyon

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The Labor Market Effects of FDI: A Panel Data Evidence from Mexico

Cited by 6 publications

References 21 publications

FDI and the growing wage gap in Mexican municipalities

FDI and the growing wage gap in Mexican municipalities

Geleceğin İşgücü İçin Teknolojinin Yükselişi: OECD Ülkelerinde Teknoloji ve İşsizlik Arasındaki Bağlantı

Foreign direct investment and employments in Asia Pacific nations: The moderating role of labor quality

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