The Impacts of Foreign Direct Investments on the Labor Market in Brazil

University of Brazil Economics Working Paper

20 Pages Posted: 12 Sep 2004

See all articles by Jorge Arbache

Jorge Arbache

Development Bank of Latin America - CAF

Date Written: July 2004

Abstract

This paper investigates the impact of FDI on the labor market in Brazil. We raise some empirical evidence for three questions: (i) Are foreign companies more skill-intensive than national companies?; (ii) Do they affect the wage formation?; (iii) Does FDI impact human capital formation? We find that foreign firms are more skill-intensive than national firms by employing better educated and more experienced workers; that multinationals pay a wage premium; and that FDI impacts human capital formation. These findings suggest that there are spill-over effects of foreign capital on the labor market.

Keywords: FDI, human capital, technology, Brazil

JEL Classification: F16, F21

Suggested Citation

Arbache, Jorge, The Impacts of Foreign Direct Investments on the Labor Market in Brazil (July 2004). University of Brazil Economics Working Paper, Available at SSRN: https://ssrn.com/abstract=587884 or http://dx.doi.org/10.2139/ssrn.587884

Jorge Arbache (Contact Author)

Development Bank of Latin America - CAF ( email )

Av Canaval Moreyra 380
Lima, Lima
Peru
+ 55 61 98194 4529 (Phone)

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