The Effect of FDI on Job Security
-
Sascha O Becker
and Marc-Andreas Muendler
Abstract
Novel linked employer-employee data for multinational enterprises and their global workforces show that multinational enterprises that expand abroad retain more domestic jobs than competitors without foreign expansions. Propensity-score estimation demonstrates that the foreign expansion itself is a dominant explanatory factor for reduced worker separation rates. Bounding, concomitant variable tests, and further robustness checks show competing hypotheses to be less plausible. The finding is consistent with the hypothesis that, given global wage differences, a prevention of enterprises from outward FDI would lead to more domestic job losses. FDI raises domestic-worker retention more pronouncedly among highly educated workers.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Frontiers Article
- The Causal Effect of Studying on Academic Performance
- The Market: Catalyst for Rationality and Filter of Irrationality
- Advances Article
- Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs
- Risk Attitude in Real Decision Problems
- The Effect of FDI on Job Security
- On the Optimal Allocation of Students and Resources in a System of Higher Education
- Giving It Away for Free? The Nature of Job-Market Signaling by Open-Source Software Developers
- Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002
- Lucky Last? Intra-Sibling Allocation of Child Labor
- Technological Proximity and Exclusive Buyer-Supplier Relationships
- The Internet and the Market for Daily Newspapers
- Optimal Policy with Heterogeneous Preferences
- A Representation Index: Measuring the Representation of Minorities in the Income Distribution
- Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement
- Contributions Article
- The Economics of Workaholism: We Should Not Have Worked on This Paper
- Millers, Commission Agents and Collusion in Grain Markets: Evidence from Basmati Auctions in North India
- Resources for Sale: Corruption, Democracy and the Natural Resource Curse
- Partners in Crime: Collusive Corruption and Search
- An Empirical Study of Happiness in Italy
- Fairness in Extended Dictator Game Experiments
- Income Insecurity and Youth Emancipation: A Theoretical Approach
- Pay Peanuts and Get Monkeys? Evidence from Academia
- Entry and Exit in the Nonprofit Sector
- Discrimination as a Competitive Device: The Case of Local Television News
- Predicting Resource Policy Outcomes via Meta-Regression: Data Space, Model Space, and the Quest for 'Optimal Scope'
- Functional Distribution, Land Ownership and Industrial Takeoff: The Role of Effective Demand
- Growth and Inequality in Closed and Open Economies: The Role of the Product Cycle
- Before and After: Gender Transitions, Human Capital, and Workplace Experiences
- Love on the Rocks: Domestic Violence and Alcohol Abuse in Rural Mexico
- Entrepreneurial First Movers, Brand-Name Fast Seconds, and the Evolution of Market Structure
- Crossing the Line: Direct Estimation of Cross-Border Cigarette Sales and the Effect on Tax Revenue
- Corruption and Openness
- Informality Traps
- Topics Article
- Conflict and Production: An Application to Natural Resources
- Strategic Behavior and Social Norms in Tipped Service Industries
- Trade Liberalization and New Exporters' Size: A Test of Heterogeneous Firm Models
- An Evolutionary Race to the Top: Trade, Oligopoly and Convex Pollution Damage
- Determinants of Business Tax Compliance
- Entry into a Network Industry: Consumers' Expectations and Firms' Pricing Policies
- Effects of Electoral Rules, Political Competition and Corruption on the Size and Composition of Government Consumption Spending: An Italian Regional Analysis
- Too Few Cooks Spoil the Broth: Division of Labor and Directed Production
- The Employment Effects of Mergers in a Declining Industry: The Case of South African Gold Mining
- Environmental Policy and Uncertain Arrival of Future Abatement Technology
- Political Altruism of Transboundary Water Sharing
- Equilibrium State Aid in Integrating Markets
- Optimal Fiscal Policy When Migration Is Feasible
- Dynamic Scoring in the Ramsey Growth Model
- Lobbying and Contract Delegation in Public Procurement
- Measuring Hypothetical Bias in Choice Experiments: The Importance of Cognitive Consistency
- The Effect of Trade Facilitation on Sectoral Trade
- After-School Supervision and Children's Cognitive Achievement
- Does Crime Affect Economic Decisions? An Empirical Investigation of Savings in a High-Crime Environment
Articles in the same Issue
- Frontiers Article
- The Causal Effect of Studying on Academic Performance
- The Market: Catalyst for Rationality and Filter of Irrationality
- Advances Article
- Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs
- Risk Attitude in Real Decision Problems
- The Effect of FDI on Job Security
- On the Optimal Allocation of Students and Resources in a System of Higher Education
- Giving It Away for Free? The Nature of Job-Market Signaling by Open-Source Software Developers
- Coping with Disaster: The Impact of Hurricanes on International Financial Flows, 1970-2002
- Lucky Last? Intra-Sibling Allocation of Child Labor
- Technological Proximity and Exclusive Buyer-Supplier Relationships
- The Internet and the Market for Daily Newspapers
- Optimal Policy with Heterogeneous Preferences
- A Representation Index: Measuring the Representation of Minorities in the Income Distribution
- Starting School at Four: The Effect of Universal Pre-Kindergarten on Children's Academic Achievement
- Contributions Article
- The Economics of Workaholism: We Should Not Have Worked on This Paper
- Millers, Commission Agents and Collusion in Grain Markets: Evidence from Basmati Auctions in North India
- Resources for Sale: Corruption, Democracy and the Natural Resource Curse
- Partners in Crime: Collusive Corruption and Search
- An Empirical Study of Happiness in Italy
- Fairness in Extended Dictator Game Experiments
- Income Insecurity and Youth Emancipation: A Theoretical Approach
- Pay Peanuts and Get Monkeys? Evidence from Academia
- Entry and Exit in the Nonprofit Sector
- Discrimination as a Competitive Device: The Case of Local Television News
- Predicting Resource Policy Outcomes via Meta-Regression: Data Space, Model Space, and the Quest for 'Optimal Scope'
- Functional Distribution, Land Ownership and Industrial Takeoff: The Role of Effective Demand
- Growth and Inequality in Closed and Open Economies: The Role of the Product Cycle
- Before and After: Gender Transitions, Human Capital, and Workplace Experiences
- Love on the Rocks: Domestic Violence and Alcohol Abuse in Rural Mexico
- Entrepreneurial First Movers, Brand-Name Fast Seconds, and the Evolution of Market Structure
- Crossing the Line: Direct Estimation of Cross-Border Cigarette Sales and the Effect on Tax Revenue
- Corruption and Openness
- Informality Traps
- Topics Article
- Conflict and Production: An Application to Natural Resources
- Strategic Behavior and Social Norms in Tipped Service Industries
- Trade Liberalization and New Exporters' Size: A Test of Heterogeneous Firm Models
- An Evolutionary Race to the Top: Trade, Oligopoly and Convex Pollution Damage
- Determinants of Business Tax Compliance
- Entry into a Network Industry: Consumers' Expectations and Firms' Pricing Policies
- Effects of Electoral Rules, Political Competition and Corruption on the Size and Composition of Government Consumption Spending: An Italian Regional Analysis
- Too Few Cooks Spoil the Broth: Division of Labor and Directed Production
- The Employment Effects of Mergers in a Declining Industry: The Case of South African Gold Mining
- Environmental Policy and Uncertain Arrival of Future Abatement Technology
- Political Altruism of Transboundary Water Sharing
- Equilibrium State Aid in Integrating Markets
- Optimal Fiscal Policy When Migration Is Feasible
- Dynamic Scoring in the Ramsey Growth Model
- Lobbying and Contract Delegation in Public Procurement
- Measuring Hypothetical Bias in Choice Experiments: The Importance of Cognitive Consistency
- The Effect of Trade Facilitation on Sectoral Trade
- After-School Supervision and Children's Cognitive Achievement
- Does Crime Affect Economic Decisions? An Empirical Investigation of Savings in a High-Crime Environment