Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=53824#.VNR6KizQrzE Author(s) Pedro S. Martins 1,2,3 , Luiz A. Esteves 4,5,6 Affiliation(s) 1 Queen Mary University of London, London, UK . 2 CEG-IST, Lisbon, Portugal . 3 IZA, Bonn, Germany . 4 Federal University of Paraná, Curitiba, Brazil . 5 CADE/MJ, Brasília, Brazil . 6 CNPq, Brasília, Brazil . ABSTRACT How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data. In order to control for unobserved worker differences, we examine both foreign acquisitions and divestments and worker mobility, including the joint estimation of firm and worker fixed effects. We find that changes in ownership do not tend to affect wages significantly, a result that holds both at the worker- and ...