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/).
Cite this article
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 -