106 lines
3.4 KiB
YAML
106 lines
3.4 KiB
YAML
abstract: 'Purpose The last two decades have been characterised by a rise in income
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and wage inequality in a wide range of countries, including European
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transition countries. The rise in globalisation is one major factor
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explaining this increasing wage inequality. International trade and FDI
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have increased significantly since the beginning of transition and the
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purpose of this paper is to focus on whether FDI plays an important role
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in explaining the pattern of wage inequality in selected transition
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countries.
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Design/methodology/approach A cross-country empirical investigation has
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been conducted using two alternative measures of wage inequality: the
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Gini coefficient and the Theil index. Several model specifications and
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estimation strategies have been employed to obtain consistent estimates
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and to check for the robustness of the results.
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Findings The results indicate that a rising share of inward FDI in gross
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domestic product (GDP) increased wage inequality in transition
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economies, though its overall effect was relatively small. Considering
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the long run, there is no clear evidence of a concave relationship
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between FDI and wage inequality, which may be a consequence of the
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relatively low levels of FDI in many transition countries.
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Practical implications Inwards FDI has made a small contribution to
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increasing wage inequality in European transition economies. However,
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its overall beneficial effects on labour markets in these countries
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suggest that rather than restricting FDI governments should target
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increasing the supply of skilled labour.
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Originality/value This new empirical evidence supports the hypothesis
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that an increased inward FDI stock as a share of GDP increases wage
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inequality in transition economies, however, this relationship is a
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complex one. Differences in average wages, wage differentials,
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employment shares of skilled workers and relative size of the
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foreign-owned sector are all likely to be important for the behaviour of
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wage inequality.'
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affiliation: 'Alili, MZ (Corresponding Author), South East European Univ, Fac Publ
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Adm \& Polit Sci, Tetovo, North Macedonia.
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Alili, Merita Zulfiu, South East European Univ, Fac Publ Adm \& Polit Sci, Tetovo,
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North Macedonia.
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Adnett, Nick, Staffordshire Univ, Sch Business Leadership \& Econ, Stoke On Trent,
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Staffs, England.'
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author: Alili, Merita Zulfiu and Adnett, Nick
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author-email: 'm.zulfiu@seeu.edu.mk
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N.J.Adnett@staffs.ac.uk'
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author_list:
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- family: Alili
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given: Merita Zulfiu
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- family: Adnett
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given: Nick
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da: '2023-09-28'
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doi: 10.1108/IJSE-09-2017-0373
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eissn: 1758-6712
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files: []
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issn: 0306-8293
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journal: INTERNATIONAL JOURNAL OF SOCIAL ECONOMICS
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keywords: Foreign direct investment; Transition economies; Wage inequality
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keywords-plus: 'UNIT-ROOT TESTS; FOREIGN DIRECT-INVESTMENT; PANEL-DATA; INCOME
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INEQUALITY; LABOR REALLOCATION; DETERMINANTS; EMPLOYMENT'
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language: English
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number: '9'
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number-of-cited-references: '70'
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orcid-numbers: Alili, Merita Zulfiu/0000-0002-6367-6193
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pages: 1283-1304
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papis_id: 4e646ca3529c4c368fbbb6d18465cd6b
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ref: Alili2018didfdi
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researcherid-numbers: Alili, Merita Zulfiu/B-2953-2016
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times-cited: '10'
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title: Did FDI increase wage inequality in transition economies?
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type: article
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unique-id: WOS:000442506900002
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usage-count-last-180-days: '2'
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usage-count-since-2013: '15'
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volume: '45'
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web-of-science-categories: Economics
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year: '2018'
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