The Role of Multinational Firms in the Wage‐Gap Debate Journal Article uri icon



  • The observation of an increase in the ratio of skilled to unskilled wages in the high‐income countries and in some cases in low/middle‐income countries has led to considerable discussion and controversy as to its cause. Virtually none of the analyses have considered a role for multinational investment in explaining the wage‐gap phenomenon. This paper adapts the authors’ earlier work to consider what role multinationals might play in factor markets. It identifies circumstances under which investment liberalization is likely to raise the wage gap in both the skilled‐labor abundant and the unskilled‐labor abundant country.

publication date

  • November 1, 1997

has restriction

  • green

Date in CU Experts

  • July 10, 2014 5:56 AM

Full Author List

  • Markusen JR; Venables AJ

author count

  • 2

Other Profiles

International Standard Serial Number (ISSN)

  • 0965-7576

Electronic International Standard Serial Number (EISSN)

  • 1467-9396

Additional Document Info

start page

  • 435

end page

  • 451


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