TY  - JOUR
AU  - Aitken,Brian
AU  - Harrison,Ann
AU  - Lipsey,Robert E.
TI  - Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5102
PY  - 1997
Y2  - June 1997
UR  - http://www.nber.org/papers/w5102
L1  - http://www.nber.org/papers/w5102.pdf
N1  - Author contact info:
Ann Harrison
The Wharton School
University of Pennsylvania
2016 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6370
Tel: 215 746 3132
E-Mail: annh@wharton.upenn.edu

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased
AB  - This paper explores the relationship between wages and foreign investment in Mexico, Venezuela, and the United States.  Despite very different economic conditions and levels of development, we find one fact which is robust across all three countries: higher levels of foreign investment are associated with higher wages.  In Mexico and Venezuela, foreign investment was associated with higher wages only for foreign-owned firms -- there is no evidence of wage spillovers leading to higher wages for domestic firms.  In the United States there is evidence of wage spillovers. The lack of spillovers in Mexico and Venezuela is consistent with significant wage differentials between foreign and domestic enterprises.  In the United States, wage differentials are smaller.
ER  -