Foreign Ownership, Wages, and Wage Changes in U.S. Industries, 1987-92

18 Pages Posted: 30 May 2006

See all articles by Zadia Feliciano

Zadia Feliciano

The Graduate Center, City University of New York (CUNY); National Bureau of Economic Research; Queens College, City University of New York (CUNY), Department of Economics

Robert E. Lipsey

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

Abstract

The authors construct a data set by industry by state by ownership for establishments in the United States using 1987 and 1992 U.S. Census and Bureau of Economic Analysis matched data to investigate the relationship between foreign ownership and wages. They find evidence that foreign-owned establishments pay higher wages in manufacturing, retail trade, and other relatively low-skill industries, but not in other higher-skill industries. A growth in the fraction of employment in foreign establishments was not significantly associated with an increase in overall wages. There is no evidence of a wage spillover to domestic establishments.

JEL Classification: J3, F2

Suggested Citation

Feliciano, Zadia and Lipsey, Robert E., Foreign Ownership, Wages, and Wage Changes in U.S. Industries, 1987-92. Contemporary Economic Policy, Vol. 24, No. 1, pp. 74-91, 2006. Available at SSRN: https://ssrn.com/abstract=904940

Zadia Feliciano (Contact Author)

The Graduate Center, City University of New York (CUNY) ( email )

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Robert E. Lipsey

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

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