The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer-employee data - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Article Dans Une Revue Japan and the World Economy Année : 2013

The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer-employee data

Résumé

Using a unique matched employer-employee dataset on Taiwanese manufacturing, we examine the impact of foreign direct investment in China on domestic employment adjustments controlling for firm and worker heterogeneity as well as for potential endogeneity of firms' expansion in China. Our findings suggest that workers employed at firms with higher levels of investment in China are more likely to leave the firm, compared with workers at firms with zero or lower levels of investment in China. We provide evidence that foreign expansion in China decreases worker employment security at parent companies, particularly for low-skilled workers. Employment adjustments through employer-to-employer transitions are found to be highly associated with wage losses, with the strongest wage effects for low-skilled workers who shift employment between industries. Moreover, we find no evidence that FDI in China contributes to skill upgrading at parent companies. (C) 2013 Elsevier B.V. All rights reserved.

Dates et versions

hal-02646783 , version 1 (29-05-2020)

Identifiants

Citer

Meng-Wen Tsou, Jin-Tan Liu, James K Hammitt, Ching-Fu Chang. The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer-employee data. Japan and the World Economy, 2013, 25-26, pp.68 - 79. ⟨10.1016/j.japwor.2013.01.007⟩. ⟨hal-02646783⟩
15 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More