@TechReport{iza:izadps:dp3607, author={Martins, Pedro S.}, title={Paying More to Hire the Best? Foreign Firms, Wages and Worker Mobility}, year={2008}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={3607}, url={https://www.iza.org/index.php/publications/dp3607}, abstract={In the context of the debate on the labour-market consequences of globalisation, we examine worker mobility in order to identify the wage differences between foreign and domestic firms. Using matched employer-employee panel data for Portugal, we consider virtually all spells of interfirm mobility over a period of ten years. We find that foreign firms offer significantly more generous wage policies, although there is also a (smaller) selection effect. The results are robust to the consideration of wage growth differences, the case of displaced workers and different subsets of workers.}, keywords={worker displacement;foreign direct investment;wage growth}, }