Foreign-Owned Plants and Job Security

University of Nottingham Research Paper No. 2007/36

35 Pages Posted: 21 Nov 2007

See all articles by Richard Upward

Richard Upward

University of Nottingham - School of Economics

Martyn J. Andrews

University of Manchester - School of Social Sciences

Lutz Bellmann

Institute for Employment Research (IAB); Institute for the Study of Labor (IZA)

Thorsten Schank

University of Erlangen-Nuremberg

Date Written: November 2007

Abstract

We investigate the hypothesis that workers in foreign-owned establishments face greater job insecurity. Using linked employer employee data from Germany, we examine whether foreign-owned establishments are more likely to exit production, and whether workers in foreign-owned establishments face higher separation rates, net of establishment exit. We find that, after controlling for the different characteristics of foreign and domestic establishments, foreign establishments have higher exit rates and higher separation rates, but the effect is quantitatively small. In contrast, foreign-owned establishments which do not export appear to have considerably higher exit rates and separation rates.

Keywords: Foreign ownership, job security, linked employer-employee data

JEL Classification: F23, J63, C41

Suggested Citation

Upward, Richard and Andrews, Martyn J. and Bellmann, Lutz and Schank, Thorsten, Foreign-Owned Plants and Job Security (November 2007). University of Nottingham Research Paper No. 2007/36, Available at SSRN: https://ssrn.com/abstract=1031618 or http://dx.doi.org/10.2139/ssrn.1031618

Richard Upward (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5151 (Phone)
+44 115 951 4159 (Fax)

Martyn J. Andrews

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom
0161 275-4874 (Phone)

Lutz Bellmann

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany
+49 911 179 3046 (Phone)
+49 911 179 3297 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

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