Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States

@inproceedings{Aitken1995WagesAF,
  title={Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States},
  author={Brian Aitken and Ann E. Harrison and Robert E. Lipsey},
  year={1995}
}
This paper explores the relationship between wages and foreign investment in Mexico, Venezuela, and the United States. Despite very different economic conditions and levels of development, we find one fact that is robust across all three countries: higher levels of foreign investment are associated with higher wages. However, in Mexico and Venezuela, foreign investment is associated with higher wages only for foreign-owned firms — there is no evidence of wage spillovers leading to higher wages… CONTINUE READING
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