Foreign-Owned Firms and U.S. Wages

58 Pages Posted: 13 Aug 2000

See all articles by Robert E. Lipsey

Robert E. Lipsey

National Bureau of Economic Research (NBER) at New York (Deceased)

Date Written: November 1994


Foreign-owned establishments in the United States pay higher wages, on average, than domestically-owned establishments. The foreign-owned establishments tend to be in higher-wage industries and also to pay higher wages within industries. They tend to locate in lower-wage states, but to pay more than domestically-owned firms within industries within states. Wages in general and wages in domestically-owned establishments tend to be higher in states and industries in which foreign-owned establishments account for a larger proportion of employment. Foreign-owned establishments that were new in 1990, mostly takeovers, had lower than average wage levels in that year but larger increases between 1990 and 1991. Increases in sales per worker and average wages were larger where employment growth was lower, possibly an indication that lower-productivity, lower-wage workers were dropped by the new owners.

Suggested Citation

Lipsey, Robert E., Foreign-Owned Firms and U.S. Wages (November 1994). NBER Working Paper No. w4927. Available at SSRN:

Robert E. Lipsey (Contact Author)

National Bureau of Economic Research (NBER) at New York (Deceased)

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