TY  - RPRT
        AU  - Görg, Holger
AU  - Strobl, Eric
AU  - Walsh, Frank
        TI  - Why Do Foreign-Owned Firms Pay More? The Role of On-the-Job Training
        PY  - 2002/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 590
        UR  - https://www.iza.org/publications/dp590
        AB  - Foreign-owned firms have consistently been found to pay higher wages than domestic firms
to what appear to be equally productive workers in both developed and developing countries
alike. Although a number of studies have documented and some attempted to explain this
stylized fact, the issue still remains unresolved. In a multi-period bargaining framework we
show that if firm specific training is more productive in foreign firms, foreign firm workers will
have a steeper wage profile and thus acquire a premium over time. Using a rich employeremployee
matched data set we show that the foreign wage premium is only acquired by
workers over time spent in the firm and only by those that receive on the job training, thus
providing empirical support for a firm specific human capital acquisition explanation.

        KW  - on-the-job training
KW  - foreign firms
KW  - wages
        ER  -