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Foreign direct investment and gendered wages in urban China

Foreign direct investment and gendered wages in urban China Abstract This paper documents the changing impact of foreign direct investment (FDI) on gendered wages in urban China. Combining household survey data from 1995 and 2002 with province-level macro-data, the paper finds that FDI as a proportion of investment has a sizable and statistically significant positive effect on both female and male wages in both years. In 1995, women experienced larger gains from FDI than men, but those gender-based advantages had reversed by 2002, with men experiencing larger wage gains from FDI than women. The paper argues that these results reflect the shift of foreign-invested enterprises to higher productivity and more domestically oriented production, a shift that interacts with gender-based employment segregation to more greatly advantage workers in male-dominated than female-dominated industries. These findings indicate that FDI can have considerable structural effects on economies that reach beyond the particular workers and firms linked to foreign investors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Feminist Economics Taylor & Francis

Foreign direct investment and gendered wages in urban China

Braunstein, Elissa; Brenner, Mark
Feminist Economics , Volume 13 (3-4): 25 – Jul 1, 2007
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Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1466-4372
eISSN
1354-5701
DOI
10.1080/13545700701439432
Publisher site
See Article on Publisher Site

Abstract

Abstract This paper documents the changing impact of foreign direct investment (FDI) on gendered wages in urban China. Combining household survey data from 1995 and 2002 with province-level macro-data, the paper finds that FDI as a proportion of investment has a sizable and statistically significant positive effect on both female and male wages in both years. In 1995, women experienced larger gains from FDI than men, but those gender-based advantages had reversed by 2002, with men experiencing larger wage gains from FDI than women. The paper argues that these results reflect the shift of foreign-invested enterprises to higher productivity and more domestically oriented production, a shift that interacts with gender-based employment segregation to more greatly advantage workers in male-dominated than female-dominated industries. These findings indicate that FDI can have considerable structural effects on economies that reach beyond the particular workers and firms linked to foreign investors.

Journal

Feminist Economics – Taylor & Francis

Published: Jul 1, 2007

Keywords: China; earnings differentials; foreign direct investment; trade liberalization; JEL Codes: F21, J7, O53

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