WAGE SPILLOVERS IN INDIAN MANUFACTURING

The presence of foreign firms might lead to movement of skilled labor from domestic firms. To prevent such movement, domestic firms could increase their wages. Also, productivity spillovers from foreign firms may increase the productivity of domestic firms and possibly the wages given in domestic fi...

Full description

Saved in:
Bibliographic Details
Published in:Singapore economic review 2012-03, Vol.57 (1), p.1-15
Main Author: Iyer, G Chidambaran
Format: Article
Language:English
Subjects:
Economic theory
Foreign enterprises
Foreign investment
India
Labor economics
Manufacturing
Panel data
Productivity
Service introduction
Spillovers
Studies
Wages
Wages & salaries
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The presence of foreign firms might lead to movement of skilled labor from domestic firms. To prevent such movement, domestic firms could increase their wages. Also, productivity spillovers from foreign firms may increase the productivity of domestic firms and possibly the wages given in domestic firms. In this paper, we try to answer whether the wages offered by domestic firms to their labor is affected by the presence of foreign firms. We carry out our analysis for an unbalanced firm-level panel dataset for 6 two-digit industries in Indian manufacturing. We find some evidence for positive wage spillover in three industries. [PUBLICATION ABSTRACT]
ISSN:0217-5908
1793-6837