Foreign Direct Investment and Wage Inequality: Evidence from China

Zhihong CHEN; Ying GE; Huiwen LAI

doi:10.1016/j.worlddev.2010.12.006

Foreign Direct Investment and Wage Inequality : Evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review

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Author(s)

Zhihong CHEN
Ying GE
Huiwen LAI

Detail(s)

Original language	English
Pages (from-to)	1322-1332
Journal / Publication	World Development
Volume	39
Issue number	8
Online published	22 Jan 2011
Publication status	Published - Aug 2011
Externally published	Yes

Link(s)

DOI	DOI https://doi.org/10.1016/j.worlddev.2010.12.006 Final Published version
	Check@CityULib
Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-79960299111&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(59e92b51-4710-49cc-a849-a3d10ddeb436).html

Abstract

This study provides micro-level evidence on the close link between foreign participation and wage inequality. We investigate the wage premium and the wage spillover effect of foreign-invested enterprises in the Chinese manufacturing sector. The results indicate a significant foreign premium in both wage and non-wage compensation. The presence of foreign and Hong Kong, Macao and Taiwan (HMT) investment results in a significantly negative spillover in terms the wage level in domestic firms, and discourages wage growth in such firms. Overall, the evidence suggests that exposure to foreign investment increases inter-enterprise wage inequality. © 2010 Elsevier Ltd.

Research Area(s)

Asian, China, Globalization, Inequality, Wage

Citation Format(s)

[ RIS ] [ BibTeX ]

Foreign Direct Investment and Wage Inequality : Evidence from China. / CHEN, Zhihong; GE, Ying; LAI, Huiwen.

In: World Development, Vol. 39, No. 8, 08.2011, p. 1322-1332.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review

CHEN, Z, GE, Y & LAI, H 2011, 'Foreign Direct Investment and Wage Inequality: Evidence from China', World Development, vol. 39, no. 8, pp. 1322-1332. https://doi.org/10.1016/j.worlddev.2010.12.006

CHEN, Z., GE, Y., & LAI, H. (2011). Foreign Direct Investment and Wage Inequality: Evidence from China. World Development, 39(8), 1322-1332. https://doi.org/10.1016/j.worlddev.2010.12.006

CHEN Z, GE Y, LAI H. Foreign Direct Investment and Wage Inequality: Evidence from China. World Development. 2011 Aug;39(8):1322-1332. Epub 2011 Jan 22. doi: 10.1016/j.worlddev.2010.12.006

CHEN, Zhihong ; GE, Ying ; LAI, Huiwen. / Foreign Direct Investment and Wage Inequality : Evidence from China. In: World Development. 2011 ; Vol. 39, No. 8. pp. 1322-1332.