The Effects of Foreign Direct Investments on the Gender Wage Differentials of Low, Medium, High-Skilled Occupations in Developing Countries from 2011-2022

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jhoana V. Alcalde

Committee Member

U-Primo Rodriguez, Gideon P. Carnaje, Ma. Angeles O. Catelo

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Abstract

Globalization in the form of Foreign Direct Investments (FDI) has been seen to bring positive changes in countries through various forms such as improving human capital, additional employment, and bringing in new technologies. The effects of FDI on labor market outcomes however have produced mixed empirical results through the years, especially in the gender aspect of the labor market. This study examines the effects of inward Foreign Direct Investments on the gender wage differentials of different occupational skill levels in developing countries from the years 2011 to 2022. Using data from the World Bank and the International Labour Organization (ILO), the study employed a panel data regression analysis from 2011 to 2022 covering 21 developing countries. The study employs a fixed effects panel data regression model with clustered standard errors to analyze the effects of net FDI inflows on the gender wage differentials across low, medium, and high-skilled occupations. Results show that net FDI inflows has a significant narrowing effect on the gender wage differentials of low-skilled occupations, signifying the improvement of female wages. Similarly, FDI also narrows the gender wage differentials in the medium-skilled occupations, but to a weaker extent. Net FDI inflows had no significant effect on the gender wage differentials in the high-skilled occupations. The findings highlight the need for policies that focus on the attraction of FDI inflows for certain sectors where most of the skill levels per occupation are abundant and policies that promote equitable economic growth.

Language

English

LC Subject

Investments, Foreign, Wage differentials, Skilled labor

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 C84

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Document Type

Thesis

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