Capital Market Integration and Wages

  title={Capital Market Integration and Wages},
  author={Anusha Chari and P. Henry and D. M. B. Sassoon},
For three years after the typical developing country opens its stock market to inflows of foreign capital, the average annual growth rate of the real wage in the manufacturing sector increases by a factor of seven. No such increase occurs in a control group of developing countries. The temporary increase in the growth rate of the real wage drives up the level of average annual compensation for each worker in the sample by 609 US dollars—an increase equal to 25 percent of their annual pre… CONTINUE READING


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