The Impacts of Multinational Companies on the Manufacturing Wage Inequality:Evidence from Indonesia

DOI

10.2991/icied-17.2018.32How to use a DOI?

Keywords

wage inequality; skilled-unskilled wage gap; FDI; multinational companies

Abstract

Inward Foreign Direct Investment (FDI) is generally believed to have a positive effect on the host country's economy. However, several studies have documented that FDI by multinational companies (MNCs) may also relate to rising wage inequality issue. Assuming that MNCs are playing an important role in introducing new technology in Indonesia's manufacturing sector, this study will investigate whether multinational companies have an impact on skilled-unskilled wage gap in the Indonesia's manufacturing sector. The study will also attempt to interpret whether the effect is non-linear - inward FDI increases wage inequality but at a decreasing rate over time. The findings show that MNCs give non-linear effect to wage inequality in Indonesia's manufacturing sector

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Detri Fitria Hasyar
AU  - Andi Fahmi Lubis
PY  - 2017/12
DA  - 2017/12
TI  - The Impacts of Multinational Companies on the Manufacturing Wage Inequality:Evidence from Indonesia
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 170
EP  - 174
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.32
DO  - 10.2991/icied-17.2018.32
ID  - FitriaHasyar2017/12
ER  -