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Foreign-owned Plants and Job Security

Author

Listed:
  • Martyn Andrews
  • Lutz Bellmann
  • Thorsten Schank
  • Richard Upward
Abstract
We investigate the hypothesis that workers in foreign-owned establishments face greater job insecurity. Using linked employer employee data from Germany, we examine whether foreign-owned establishments are more likely to exit production, and whether workers in foreign-owned establishments face higher separation rates, net of establishment exit. We find that, after controlling for the different characteristics of foreign and domestic establishments, foreign establishments have higher exit rates and higher separation rates, but the effect is quantitatively small. In contrast, foreign-owned establishments which do not export appear to have considerably higher exit rates and separation rates.

Suggested Citation

  • Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, 2007. "Foreign-owned Plants and Job Security," Discussion Papers 07/36, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:07/36
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    Cited by:

    1. Anna Ferragina & Fernanda Mazzotta, 2018. "Firm Employment Resilience and FDI: Evidence from Italy," L'industria, Società editrice il Mulino, issue 4, pages 523-556.
    2. Uwe Jirjahn & Steffen Mueller, 2014. "Non-union worker representation, foreign owners, and the performance of establishments," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 140-163, January.
    3. Michael Moritz & Bastian Stockinger & Merlind Trepesch, 2017. "Multinational Resilience or Dispensable Jobs? German FDI and Employment in the Czech Republic Around the Great Recession," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(3), pages 345-359.
    4. Joachim Wagner & John P. Weche Gelübcke, 2016. "Risk or Resilience? The Role of Trade Integration and Foreign Ownership for the Survival of German Enterprises during the Crisis 2008–2010," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 11, pages 369-397, World Scientific Publishing Co. Pte. Ltd..
    5. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2013. "Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level," European Economic Review, Elsevier, vol. 60(C), pages 170-188.
    6. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute of Labor Economics (IZA).
    7. René Söllner & Sandra Jung, 2017. "The impact of foreign trade and ownership on enterprise exits: new insights through micro data linking," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 11(1), pages 8-32, April.
    8. Martyn Andrews & Ken Clark & William Whittaker, 2011. "The determinants of regional migration in Great Britain: a duration approach," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 127-153, January.
    9. Erhardt, Eva Christine, 2018. "Firm performance after high growth: A comparison of absolute and relative growth measures," MPRA Paper 88077, University Library of Munich, Germany.
    10. Paula Sarmento & Rosa Forte, 2019. "Does Foreign Presence Induce Host Country Firms’ Exit? The Case of Portugal," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(3), pages 323-337, August.
    11. Chiara Franco & John P. Weche Gelübcke, 2015. "The Death of German Firms: What Role for Foreign Direct Investment?," The World Economy, Wiley Blackwell, vol. 38(4), pages 677-703, April.

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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