scholarly journals FDI effects on the labor market of host countries

2016 ◽  
pp. 01-26 ◽  
Author(s):  
Galina Hale ◽  
◽  
Mingzhi Xu ◽  
2018 ◽  
Vol 14 (4) ◽  
pp. 473-491
Author(s):  
Young-Min Kim ◽  
Il-Seok Yang
Keyword(s):  

2015 ◽  
Vol 53 (1) ◽  
pp. 198-220 ◽  
Author(s):  
Chinmay Pattnaik ◽  
SoonKyoo Choe ◽  
Deeksha Singh

Purpose – The purpose of this paper is to examine the impact of quality of market supporting institutions (institutional quality) in host country and the similarities and differences of institutional quality between the home and host country (institutional distance) on subsidiary performance. Design/methodology/approach – Based on the conceptualization of new institutional economics, the authors divide quality of host country institutions into factor markets; product, capital, labor market and sociopolitical dimensions. The authors examine the impact of the quality these institutional dimensions in host countries and their difference between home and host country on the performance of 318 subsidiaries of 146 Korean listed manufacturing firms operating in 28 host countries from 2001 to 2006. Findings – The empirical results based on 1,129 observations show that institutional distance explains a significant variance in the subsidiary performance. In particular, the difference in quality of institutions in product, capital and labor market has negative impact on subsidiary performance. However, except for quality of regulation in labor market, host country institutional qualities do not significantly explain the variation in subsidiary performance. Originality/value – The evidence suggests that host country institutions matter substantially when considered with their relative similarity and difference with home country institutions. The impact of individual dimensions of institutions varies on subsidiary performance.


Author(s):  
Olga Stangej ◽  
Inga Minelgaite ◽  
Kari Kristinsson ◽  
Margret Sigrun Sigurdardottir

Purpose The purpose of this paper is to examine how prejudice in a post-migration labor market can be mitigated, specifically, whether education received in the host country can serve as a signal of social integration for immigrant workers in employment settings. Design/methodology/approach The authors conducted an audit discrimination study, using an experimental setup to examine the interplay between prejudice and education as a signal of the social integration of immigrants in employment settings. Findings The results of the study indicate that signals of social integration, such as, qualifications acquired in the host country through education, counter prejudice against Polish immigrants in Iceland. Research limitations/implications The study provides evidence that immigrants are subjected to prejudice that can restrain their employment opportunities. The acquisition of education in the host country can mitigate this effect, but also diminishes the line between social integration and assimilation. However, the study is limited by a relatively small sample size and a single-country context. Practical implications The study offers insights for both countries and organizations worldwide that are facing the need to successfully embrace a mobile workforce and the challenge of a diverse workforce composition. Originality/value The study addresses the under-researched effects of education on human capital transferability in the host labor market. More specifically, it uncovers that the differentiation between education acquired in the home country and education acquired in the host country is a signal that can mitigate prejudice and its effects on the employment of immigrants in the host countries.


Two Homelands ◽  
2021 ◽  
Vol 2021 (54) ◽  
Author(s):  
Sonila Danaj ◽  
Erka Çaro

This article explores the mobility pathways of temporary EU workers and the implications that transnational temporary mobility has on their labor market outcomes and access to social rights and benefits. The experiences of temporary EU migrants working in the UK show that despite the narrative of the borderlessness of the common European labor market, access to host countries’ labor market and welfare is shaped by their employment status and welfare eligibility criteria that produce worker precariousness. Temporary EU workers’ experiences are characterized by employment insecurity and unequal access to labor and social rights, effects which might increase since the UK has left the EU.


2021 ◽  
pp. 019791832110299
Author(s):  
Jonas Wiedner ◽  
Johannes Giesecke

How important were manufacturing and heavy industries to the economic integration of twentieth-century immigrants in Western societies? This article examines how macro-social change in Germany since the height of manufacturing has affected the socio-economic integration of male immigrants. We develop an analytical framework to assess how educational expansion among natives, deindustrialization, and the increasing importance of formal qualifications shape male immigrant-native gaps in labor-market outcomes over time. Empirically, we focus on first-generation male Turkish immigrants in Germany and use micro-census data spanning almost 40 years. Through a novel empirical quantification of key theoretical arguments concerning immigrant economic integration, we find growing inter-group differences between the late 1970s and mid-2000s (employment) and mid-2010s (incomes), respectively. The growth of differences between the immigrant and native income distributions was most pronounced in their respective bottom halves. Our analysis shows that these trends are linked to the increased importance of formal educational qualifications for individual labor-market success, to educational expansion in Germany, and to deindustrialization. Employment in Germany shifted away from middling positions in manufacturing, but while natives tended to move into better-paying positions, Turkish immigrants mainly shifted into disadvantaged service jobs. These results provide novel evidence for claims that the economic assimilation of less-skilled immigrants may become structurally harder in increasingly post-industrial societies. We conclude that structural change in host countries is an important, yet often overlooked, driver of immigrant socio-economic integration trajectories.


2006 ◽  
Vol 55 (1) ◽  
Author(s):  
Peter Nunnenkamp

AbstractThe rise in foreign direct investment flowing to developing countries has created high expectations that, by drawing on this source of external financing, developing countries could initiate or accelerate processes of economic catching-up to advanced industrialized countries. By contrast, the public in advanced countries such as Germany is increasingly concerned that the relocation of production and the outsourcing of inputs by multinational enterprises add significantly to domestic labor market problems. A critical review of the literature and own empirical analyses suggest, however, that both views have to be qualified in major respects. As concerns developing host countries, it appears to be more difficult to derive macroeconomic benefits from foreign direct investment than to attract it. The labor market repercussions in advanced home countries are fairly complex. While relocation and outsourcing are important means to support the international competitiveness of domestic enterprises, the employment prospects and the relative wages of less qualified workers are likely to deteriorate.


2018 ◽  
Vol 10 (12) ◽  
pp. 4543 ◽  
Author(s):  
Nicu Marcu ◽  
Marian Siminică ◽  
Graţiela Georgiana Noja ◽  
Mirela Cristea ◽  
Carmen Elena Dobrotă

This study is set out to identify feasible ways for immigrants’ integration into the major ten host countries within the European Union (EU-10) and increased labor market performance. Eurostat, OECD, and United Nations High Commissioner for Refugees (UNHCR) official data was mainly used to capture essential international migration indicators (for both dimensions—economic and humanitarian), along with education, socio-economic development and labor market credentials, as key variables for immigrants’ integration into EU-10, compiled for 2000–2017. In this respect, spatial analyses, bootstrap estimations, structural equations (SEM), and Gaussian graphical models (GGM) are applied, to better grasp migrants’ labor market outcomes. Significant positive consequences reflected through a reduction in the unemployment rate of the foreign population are generated by active labor market policies, jointly with an enhancement in the attainment for secondary education, and welfare advances. The opposite, a rise in income inequalities has negative effects, while additional support for R&D activities deployed within the business sector is required to entail migrants’ labor market performance. The passive policies need to be redesigned and tailored to significantly downsize the foreign unemployment, since these are currently acting like a disincentive for an active participation of migrants on the European labor market, thus confining their integration.


2020 ◽  
Vol 34 (1) ◽  
pp. 94-121 ◽  
Author(s):  
Courtney Brell ◽  
Christian Dustmann ◽  
Ian Preston

We provide an overview of the integration of refugees into the labor markets of a number of high-income countries. Discussing the ways in which refugees and economic migrants are differently selected and so might be expected to perform differently in a host country’s labor market, we examine employment and wages for these groups over time after arrival. There is significant heterogeneity between host countries, but in general, refugees experience persistently worse outcomes than other migrants. While the gaps between the groups can be seen to decrease on a timescale of a decade or two, this is more pronounced in employment rates than it is in wages. We also discuss how refugees are distinct in terms of other factors affecting integration, including health, language skills, and social networks. We provide a discussion of insights for public policy in receiving countries, concluding that supporting refugees in early labor market attachment is crucial.


Author(s):  
Özlem İnanç-Tunçer

This chapter discusses the effects of immigration on the labor market of receiving countries, focusing on employment. The effect of immigration on the welfare of native population is an important issue in public debate. The common perception is, at least in the short run, because of immigration, unemployment rates would increase in the host countries, or that immigrants would depress wages of native workers. However, these perceptions do not find confirmation in the previous research on this literature. According to Jean and Jimenez (2011), the evidence is, at best, mixed. Although the magnitude of the impact depends on time and space, in general, results of the previous literature indicate that immigration has only very small or no effect on employment and wages of resident workers. The aim of this chapter is to provide an overview of immigration-labor market relation for different countries and time intervals with some significant policy implications with regards to state officials.


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