Foreign Ownership and Labour Markets in sub-Saharan African Manufacturing and Services Firms

Neil Foster-McGregor, Anders Isaksson, Florian Kaulich

Publication: Working/Discussion PaperWorking Paper/Preprint


We examine whether foreign-owned firms pay higher wages and have higher employment than domestically-owned firms using survey data from 19 sub-Saharan African (SSA) countries and data on both manufacturing and services fi ms. Our results indicate that foreign-owned firms tend to pay higher average wages than domestically-owned firms conditional on other factors such as firm size and country and sector effects, with the wage premium found to be higher for white-collar workers. Foreign-owned firms are also found to employ more workers, an effect that tends to be larger in manufacturing firms, and for blue-collar workers in manufacturing in particular.
Original languageEnglish
Publication statusPublished - 2013

Publication series

SeriesBIT Working Paper

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502025 Econometrics
  • 502027 Political economy
  • 502046 Economic policy
  • 502003 Foreign trade

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