Next Article in Journal
Determination of Initial Stiffness of Timber–Steel Composite (TSC) Beams Based on Experiment and Simulation Modeling
Next Article in Special Issue
Is Innovation Destroying Jobs? Firm-Level Evidence from the EU
Previous Article in Journal
Exceptional Drought and Unconventional Energy Production
Previous Article in Special Issue
Assessment of the Technological Changes Impact on the Sustainability of State Security System of Ukraine
Article Menu
Issue 4 (April) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(4), 1219;

Inward Greenfield FDI and Patterns of Job Polarization

European Commission, Joint Research Centre, 41092 Seville, Spain
Author to whom correspondence should be addressed.
Received: 27 February 2018 / Revised: 5 April 2018 / Accepted: 8 April 2018 / Published: 17 April 2018
(This article belongs to the Special Issue The Impact of Technological Change on Employment, Skills and Earnings)
Full-Text   |   PDF [1338 KB, uploaded 3 May 2018]   |  


The unprecedented growth in foreign direct investment in the last few decades has caused drastic changes in the labor markets of the host countries. The major part of FDI takes place in low-tech industries, where the wages and skills are low, or in high-tech, where they offer a wage premium for the highly skilled workers. This mechanism may increase the polarization of employment into high-wage and low-wage jobs, at the expense of middle-skill jobs. This paper looks at the effects of two types of FDI inflows, namely foreign investment in high-skill and low-skill activities, on job polarization. We match data on greenfield FDI aggregated by country and sector with data on employment by occupational skill to investigate the extent to which different types of greenfield FDI are responsible for skill polarization. Our results show that low-skill foreign investment shifts employment from high- to medium- and low-skill jobs, while skill-intensive FDI generally leads to skill upgrading. Only FDI in information and communication technology (ICT) is associated with job polarization, but only when accounting for the plurality of job polarization patterns across European sectors. View Full-Text
Keywords: Foreign Direct Investment; Skills; European labor markets; Technological change; Globalization; Multinational enterprises Foreign Direct Investment; Skills; European labor markets; Technological change; Globalization; Multinational enterprises

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Amoroso, S.; Moncada-Paternò-Castello, P. Inward Greenfield FDI and Patterns of Job Polarization. Sustainability 2018, 10, 1219.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top