Multinationals and wages: Evidence from employer-employee data in Serbia

Autor: Delevic Uros, Kennell James
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Ekonomski Anali, Vol 67, Iss 232, Pp 49-80 (2022)
Druh dokumentu: article
ISSN: 0013-3264
1820-7375
DOI: 10.2298/EKA2232049D
Popis: Many studies have reported that foreign-owned companies pay higher wages on average than domestic companies. However, this can be attributed to the different composition of the workforce or to a wage premium at the individual worker level. This paper contributes to this literature by observing whether individuals that change their job from a domestic to a foreign- owned company experience a change in their wages. Furthermore, it investigates whether this difference in wage patterns is moderated by workers’ education. This paper is one of the very few micro-econometric studies that deal with this question in a transition country, Serbia, using employer- employee data on the private sector over a long time period (15 years). Changing jobs is found to be positively associated with workers’ wages: the change in wages is higher when moving from a domestic to a foreign company than vice versa. The evidence suggests that more-educated workers benefit the most from leaving domestic companies.
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