Jobs, FDI and institutions in Sub-Saharan Africa: evidence from firm-level data
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Organización Internacional del Trabajo (OIT)
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| Format: | Entrada de enciclopedia |
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International Labour Organization
2017
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| _version_ | 1874525357250445321 |
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| author | Sotiris Blanas Adnan Seric Christian Viegelahn |
| author_facet | Sotiris Blanas Adnan Seric Christian Viegelahn Sotiris Blanas Adnan Seric Christian Viegelahn |
| contents | Jobs, FDI and institutions in Sub-Saharan Africa: evidence from firm-level data Sotiris Blanas Adnan Seric Christian Viegelahn Using a unique sample of foreign-owned and domestic firms in Sub-Saharan Africa, we study the differences in the quantity and quality of jobs that they offer, and identify how these differences are determined by country-level institutional factors. After controlling for numerous firm-level characteristics, we find that foreign-owned firms offer more stable and secure jobs than domestic firms, as evidenced by their higher and lower shares of permanent full-time and temporary employment, respectively. The job stability and security advantage of foreign-owned firms is smaller in countries with higher firing costs and better governance, where domestic firms are likely to offer more stable and secure jobs. In addition, foreign-owned firms are less likely to offer unpaid work and have a lower share of these workers. They also have a higher average training intensity and pay an average wage premium, as well as wage premia to production, non-production and managerial workers. The wage premia of foreign-owned firms are lower in countries with higher governance and social policy standards, where domestic firms are likely to pay higher wages. Finally, we show that the job quality advantage of foreign-owned firms depends on the location of their parents, the mode of their establishment, their main business purpose and the most critical investment incentive received from the host country. Research Department working paper (International Labour Organization), no. 23, ILO publication.encyclopediaEntry |
| format | Entrada de enciclopedia |
| id | ilo_995218865202676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 2017 |
| publisher | International Labour Organization |
| spellingShingle | Jobs, FDI and institutions in Sub-Saharan Africa: evidence from firm-level data Sotiris Blanas Adnan Seric Christian Viegelahn Jobs, FDI and institutions in Sub-Saharan Africa: evidence from firm-level data Sotiris Blanas Adnan Seric Christian Viegelahn Using a unique sample of foreign-owned and domestic firms in Sub-Saharan Africa, we study the differences in the quantity and quality of jobs that they offer, and identify how these differences are determined by country-level institutional factors. After controlling for numerous firm-level characteristics, we find that foreign-owned firms offer more stable and secure jobs than domestic firms, as evidenced by their higher and lower shares of permanent full-time and temporary employment, respectively. The job stability and security advantage of foreign-owned firms is smaller in countries with higher firing costs and better governance, where domestic firms are likely to offer more stable and secure jobs. In addition, foreign-owned firms are less likely to offer unpaid work and have a lower share of these workers. They also have a higher average training intensity and pay an average wage premium, as well as wage premia to production, non-production and managerial workers. The wage premia of foreign-owned firms are lower in countries with higher governance and social policy standards, where domestic firms are likely to pay higher wages. Finally, we show that the job quality advantage of foreign-owned firms depends on the location of their parents, the mode of their establishment, their main business purpose and the most critical investment incentive received from the host country. Research Department working paper (International Labour Organization), no. 23, ILO publication.encyclopediaEntry |
| title | Jobs, FDI and institutions in Sub-Saharan Africa: evidence from firm-level data |
| url | https://researchrepository.ilo.org/esploro/outputs/encyclopediaEntry/Jobs-FDI-and-institutions-in-Sub-Saharan/995218865202676 |