Foreign-owned plants and job security

We investigate the hypothesis that workers in foreign-owned plants face greater job insecurity than those in domestic-owned plants. Using linked employer-employee data from Germany, we examine whether foreign-owned plants are more likely to close down, and whether workers in foreign-owned plants face higher separation rates. Our results show that, in Germany, foreign-owned plants per se are not associated with greater job insecurity, either through plant exit or worker separation. However, small, non-exporting and privately owned foreign-owned plants do face a higher risk of closure than equivalent domestic plants. © 2011 Kiel Institute.