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  5. Why Do Foreign Firms Pay More: The Role of On-the-Job-Training
 
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Why Do Foreign Firms Pay More: The Role of On-the-Job-Training

Author(s)
Görg, Holger  
Strobl, Eric  
Walsh, Frank  
Uri
http://hdl.handle.net/10197/8053
Date Issued
2007-10
Date Available
2016-10-13T12:40:42Z
Abstract
While foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers, the causes of this remain unresolved. In a two-period bargaining framework we show that if training is more productive and specific in foreign firms, foreign firm workers will have a steeper wage profile and thus acquire a premium over time. Using a rich employer-employee matched data set we verify that the foreign wage premium is only acquired by workers over time spent in the firm and only by those that receive on the job training, thus providing empirical support for a firm specific human capital acquisition explanation.
Other Sponsorship
Leverhulme Trust
Type of Material
Journal Article
Publisher
Springer
Journal
Review of World Economics
Volume
143
Issue
3
Start Page
464
End Page
482
Copyright (Published Version)
2007 Kiel Institute
Subjects

On-the-job training

Foreign firms

Wages

Classification
F23
J24
DOI
10.1007/s10290-007-0117-9
Language
English
Status of Item
Peer reviewed
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-nd/3.0/ie/
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rwe_3.pdf

Size

67.99 KB

Format

Adobe PDF

Checksum (MD5)

e0ba4038188ab6ef3a3f433088c01b33

Owning collection
Economics Research Collection

Item descriptive metadata is released under a CC-0 (public domain) license: https://creativecommons.org/public-domain/cc0/.
All other content is subject to copyright.

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