Since the beginning of the nineties, Austria has become as one of the most important foreign direct investors in Central and Eastern European Countries (CEEC)1. Employment in Austrian affiliates located in the East and Central European countries (CEEC) increased from 50.000 to 233.000 in the period 1993 to 2003. In 2003, the employment share of foreign affiliates of Austrian multinationals in the CEEC as a share of total foreign employment was about 71%, which is the highest share in the OECD area.
While outward FDI has given an important drive to the internationalisation process of the Austrian firms from which many positive impulses to the Austrian economy have been supported empirically, the strong foreign involvement of Austrian firms has also given rise to fears that the relocation of labour intensive production to low-wage countries would “export jobs” and reduce employment at home. From theory as well as from many empirical studies on FDI we know that much of the effects on the home economy depend on the type of FDI. While positive effects can be expected from horizontal FDI, the impact of vertical FDI is not clear a priori (Becker – Jäckle – Mündler, 2005). Vertical FDI may lead to exports from the parent company to its foreign affiliates, increase productivity and international competitiveness but still substitute employment at home.
How does a firms technological change affect wages? The question is fundamental for our understanding of the sources of both individual wage growth and wage dispersion. Yet different theories provide very different predictions. In a competitive frictionless model workersmwages respond to aggregate labour market conditions and personal characteristics, such as human capital. The situation of the firm or its sector of operation does not play a role unless for compensating differentials related to (dis)amenities in the workplace. Similarly, in Azariadis (1975) risk&neutral firms insure risk&averse workers against wage fluctuations related to productivity and demand shocks. In contrast, rent&sharing models suggest that individual wages respond to firmsmprofitability, and consequentially fluctuate with firm movements in demand and productivity. This study uses matched employer employee data with unique firm side information to assess the role of firm level productivity for the fluctuations and dispersion of wages.
Prostate cancer knows no lines, no boundaries and does not choose favorites. Second only to skin cancer as the leading cancer among men, prostate cancer is a formidable foe. Each year at least 200,000 men are diagnosed with prostate cancer while another 45,000 men die from the disease.
