Roadmap towards gender equality: analyzing the influence of foreign direct investment on wage dynamics

Author:

Mutai Noah1ORCID,Katusiime Juliet2,Dervishaj Valdrin1ORCID,Popoola Olufunke Mercy1ORCID

Affiliation:

1. Berlin School of Business and Innovation

2. Freie University Berlin

Abstract

Abstract This study investigates the relation between foreign direct investments (FDI) and wage dynamics in Germany, Austria, and the Netherlands, aiming to develop a sustainable roadmap for reducing gender inequalities. Selected for their diverse labor dynamics, sustainability commitments, and gender equality situations, these countries serve as ideal case studies. Data spanning 1991 to 2021 on FDI and the percentage of gender-based workers were collected from the World Bank Development Indicators. Employing various linear regression models, our research examines the relationship between current and lagged wages for different genders, shedding light on how FDIs may influence wage patterns, especially regarding gender inequality. The quantitative study affirms the model's robustness, revealing a clear linear association between FDIs and salaries in these nations. This underscores the potential impact of foreign investments on wage dynamics, providing a foundation for addressing and reducing gender inequalities. JEL Classification: F23, J31, O15

Publisher

Research Square Platform LLC

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