Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps

Pflüger, Michael; Blien, Uwe; Moeller, Joachim; Moritz, Michael L.

doi:10.2139/ssrn.1731189

Cited by 3 publications

(2 citation statements)

References 144 publications

(102 reference statements)

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“…These multinational enterprises (MNEs) exchange goods within the boundaries of the firm and across borders, which amounts to ~30% of total world trade (Antras, 2003; Bernard, Jensen & Schott, 2009; Ramondo, Rappoport & Ruhl, 2016). Despite the importance of such foreign activities and its high political concern, the extant literature has not yet provided a conclusive answer regarding their effects on domestic labour (see the reviews by see the reviews by Hummels, Munch & Xiang, 2018; Feenstra, 2010; Crinò, 2009, or see Pflüger, Blien, Möller & Moritz, 2013 for a focus on Germany). On the one hand, FDI induces positive labour market effects because it enhances MNE productivity due to intensified market access, the exploitation of international factor price differences and greater specialisation.…”

Section: Introductionmentioning

confidence: 99%

“…However, one substantial caveat in all of these studies is the selection bias towards large MNEs. Because their FDI information is drawn from the MiDi‐Ustan data set from the Deutsche Bundesbank, their sample includes a selection of relatively large MNEs (see Pflüger et al, 2013). Because of these thresholds, small‐ and medium‐sized enterprises (SMEs) are strongly underrepresented, which biases the results, especially for many small service MNEs.…”

Section: Introductionmentioning

confidence: 99%

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Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

2021

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In this paper, we revisit questions about the onshore employment effects of firms that conduct foreign direct investment (FDI) in countries with substantially lower average wages. Our results derive from the use of rich administrative records on the universe of employees in German multinational enterprises (MNEs) that were active in the Czech Republic in 2010. Compared with former studies, the unique data set in this study includes a much higher fraction of small‐ and medium‐sized firms and leads to strikingly different results for service MNEs. Applying coarsened exact matching for firms and an event‐study design, we show that the domestic employment growth of MNEs decreases relative to that of non‐MNEs and that the affected workers are those with low or medium educational attainment in the manufacturing sector and with medium or high educational attainment in the service sector. Regarding workers’ tasks, our results do not show that FDI affects routine jobs beyond a worker's skill level.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

2021

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Collecting information on job tasks—an instrument to measure tasks required at the workplace in a multi-topic survey

Matthes

Christoph

Janik

et al. 2014

J Labour Market Res

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The analysis of job tasks has become a field of growing scientific activity in recent years. Information on such tasks has been used to analyze various research questions, especially regarding changes in the overall structure of the economy and their implications for persons and firms. Arguably the most prominent of these research questions is the analysis of the consequences of technological change for job tasks, skill demand, and wage inequality.Despite the growing importance of this field of research, the range of actual task measures to be used in empirical analyses is rather limited. Therefore, we considered it worthwhile to develop a survey instrument to measure job tasks by asking the job holders directly. The resulting questionnaire module was administered in the fourth panel wave of the German National Educational Panel Study's (NEPS) adult stage.In this paper, we provide an overview of our conceptual background as well as the steps taken during the development of the survey instrument. Furthermore, we present an initial exploratory analysis of the data collected to validate the instrument.

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Work routines and risks of automation in the Russian labor market

Gimpelson

Kapeliushnikov

2022

Vopr. èkon.

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The study explores routine and non-routine content of job tasks across occupations in the Russian labor market. Each occupation contains a bundle of job tasks, which can be routine or non-routine, cognitive or manual. Occupations, in which most job tasks are routine, are under the risk of automation, and therefore their future is of concern. Our empirical analysis uses three main data sources that contain information in the detailed occupational breakdown: on employment, on the extent of routinization, and on annual labor incomes. This data set allows to estimate task indices for disaggregated occupations and different socio-economic groups and also present empirical estimates of wage penalties and premiums for workers with different job content. The calculations suggest that the proportion of jobs in which routine tasks tend to prevail is not large and hardly exceeds 10%. From this follows that a massive substitution of labor by machines or AI in foreseeable future does not look like a plausible option. Content of job tasks is expectedly associated with the level of pay: workers with non-routine cognitive tasks are better rewarded, and non-routine manual tasks are the most penalized. A polarization scenario feared by some observers does not seem a likely option in Russia for years to come.

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Labor Market Effects of Trade and FDI: Recent Advances and Research Gaps

Cited by 3 publications

References 144 publications

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

Collecting information on job tasks—an instrument to measure tasks required at the workplace in a multi-topic survey

Work routines and risks of automation in the Russian labor market

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