TY  - BOOK
AU  - Lipsey,Robert E.
AU  - Sjoholm,Fredrik
ED  - National Bureau of Economic Research.
TI  - Foreign Direct Investment and Wages in Indonesian Manufacturing
T2  - NBER working paper series
PY  - 2001///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - May 2001; Hardcopy version available to institutional subscribers
N2  - This paper asks two types of questions. One is about the behavior of foreign-owned firms in Indonesian labor markets and the other is about the effect of the presence of foreign-owned firms on Indonesian wages. We ask first whether foreign-owned plants pay a higher price for labor, that is, more than locally-owned plants for workers of a given quality, as we can measure it. We then ask whether foreign-owned plants pay a higher price for labor given the characteristics of the plants such as their size, industry, and location. The answer is that foreign firms do pay a higher price, and even a higher price given their plant characteristics. The second set of questions is whether a larger presence of foreign-owned plants results in higher wages in locally-owned plants and overall. Higher foreign presence leads to higher wages in locally-owned plants. Since the foreign plants also pay higher wages than locally-owned ones, the two factors together mean that higher foreign presence raises the general wage level in a province and industry
UR  - https://www.nber.org/papers/w8299
UR  - http://dx.doi.org/10.3386/w8299
ER  -