| The thesis investigates the effect of inward foreign direct investment on host labor markets. The analysis focuses on wage premium effects of foreign presence at the industry level in a sample of OECD nations, including Canada, France, Germany, the UK and the US. Estimation results for versions of the wage equation conforming to the bargaining wage framework indicate that higher degrees of foreign direct investment are associated with higher real wage levels unexplained by labor productivity gains. The foreign wage premium effect displays statistical and economic significance robust across specifications suggesting that, in addition to higher wages paid in foreign-owned firms and wage increases due to productivity spillovers, foreign economic presence induces wage-based competition on host labor markets, leading to increases in the overall industry wage level attributed to wage premium. |
