Abstract

AbstractWe 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. Our results indicate that foreign‐owned firms pay higher average wages than domestically owned firms, with the wage premium found to be higher for white‐collar workers. We find little evidence of a positive employment effect of foreign ownership, though the evidence suggests a positive employment effect of Chinese ownership on workers in manufacturing.

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