NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Foreign Ownership and Wages in the United States, 1987 - 1992

Zadia Feliciano, Robert E. Lipsey

NBER Working Paper No. 6923
Issued in February 1999
NBER Program(s):   ITI

Foreign-owned establishments in the United States pay higher wages, on average, than domestically-owned establishments. Much of the difference is related to industry composition, but there are also differences within industries within states, 5-7 percent in manufacturing and 9-10 percent in other industries. Within manufacturing, the difference can all be related to establishment, state, and industry characteristics, but in other industries, a substantial difference in average wages in favor of foreign establishments remains even when these other determinants of wages are taken into account. Within manufacturing, the extent of foreign ownership in an industry in a state had no impact on wages in 1987 when these other factors were taken into account, but it was associated with higher wages in 1992. Outside of manufacturing, higher foreign ownership was associated with higher wages in both years, and in 1992, even with higher-wages in domestically-owned establishments. Outside of manufacturing, larger increases in foreign ownership in an industry in a state between 1987 and 1992 were associated with larger increases in average wages. The wage effect was confined to the foreign-owned establishments themselves.

download in pdf format
   (828 K)

email paper

This paper is available as PDF (828 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6923

Published: Feliciano, Zadia M. and Robert E. Lipsey. "Foreign Ownerhsip, Wages, And Wage Changes In U.S. Industries, 1987-92," Contemporary Economic Policy, 2006, v24(1,Jan), 74-91.

Users who downloaded this paper also downloaded these:
Lipsey and Sjoholm w8299 Foreign Direct Investment and Wages in Indonesian Manufacturing
Doms and Jensen Comparing Wages, Skills, and Productivity between Domestically and Foreign-Owned Manufacturing Establishments in the United States
Lipsey Home- and Host-Country Effects of Foreign Direct Investment
Lipsey w9293 Home and Host Country Effects of FDI
Lipsey w4927 Foreign-Owned Firms and U.S. Wages
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us