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OECD Employment Outlook 2008

image of OECD Employment Outlook 2008

As ageing populations put more downward pressure on economic growth in the coming decades, it is essential that OECD countries improve labour market performance.  This edition of OECD's annual report on labour markets brings the reader not only detailed information on recent labour market developments, but also in-depth analysis of the effects of various policy measures and prospects through 2009.  The analysis includes coverage of of the youth labour market in OECD Countries; informal employment and undeclared work; labour market discrimination and policies to combat it; the link between job stress and mental health problems; and the pay and working conditions offered by multinational firms. This book includes StatLinks, URLs which link statistical tables and graphs to Excel spreadsheets on the internet.

English French, Spanish

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Do Multinationals Promote Better Pay and Working Conditions?

Foreign direct investment (FDI) by OECD-based multinational enterprises (MNEs) in developing and emerging economies has increased dramatically over the past two decades. While generally perceived as beneficial for local development, it has also raised concerns about unfair competition and the protection of workers’ rights in host countries. This chapter assesses the effects of FDI on wages and working conditions for workers of foreign affiliates of MNEs and those of their independent supplier firms. The evidence suggests that MNEs tend to provide better pay than their domestic counterparts, especially when they operate in developing and emerging economies, but not necessarily better non-wage working conditions. The effects on wages may also spread to the foreign suppliers of MNEs, but those spillover effects are small.

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