The Impacts of Foreign Direct Investments on the Labor Market in Brazil
University of Brazil Economics Working Paper
20 Pages Posted: 12 Sep 2004
Date Written: July 2004
This paper investigates the impact of FDI on the labor market in Brazil. We raise some empirical evidence for three questions: (i) Are foreign companies more skill-intensive than national companies?; (ii) Do they affect the wage formation?; (iii) Does FDI impact human capital formation? We find that foreign firms are more skill-intensive than national firms by employing better educated and more experienced workers; that multinationals pay a wage premium; and that FDI impacts human capital formation. These findings suggest that there are spill-over effects of foreign capital on the labor market.
Keywords: FDI, human capital, technology, Brazil
JEL Classification: F16, F21
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