Internationalisation, employment generation and wage premia: evidence from Indian manufacturing firms

Abstract

AbstractThe study investigates the impact of internationalisation on employment and wages in the Indian manufacturing sector by using an extensive plant‐level dataset. Using system generalised method of moments (GMM) and quantile regression estimators, we find strong evidence of the dampening effect of exports and imports on wages, whereas a positive impact of foreign investment on wages. However, the magnitude of the impact of internationalisation on wages reduces marginally at higher quantile levels. The impact of imports and exports on employment generation is slightly ambiguous though overall indicates a beneficial impact.