Affiliation:
1. University of Greenwich
Abstract
Many studies have reported that foreign-owned companies pay higher wages on
average than domestic companies. However, this can be attributed to the
different composition of the workforce or to a wage premium at the
individual worker level. This paper contributes to this literature by
observing whether individuals that change their job from a domestic to a
foreign- owned company experience a change in their wages. Furthermore, it
investigates whether this difference in wage patterns is moderated by
workers? education. This paper is one of the very few micro-econometric
studies that deal with this question in a transition country, Serbia, using
employer- employee data on the private sector over a long time period (15
years). Changing jobs is found to be positively associated with workers?
wages: the change in wages is higher when moving from a domestic to a
foreign company than vice versa. The evidence suggests that more-educated
workers benefit the most from leaving domestic companies.
Publisher
National Library of Serbia
Subject
General Economics, Econometrics and Finance