In this article, written by Dr. Pietro Moncada Paternò Castello on behalf of the European Commission, the topic of the polarization of the labour market in Europe as a result of Greenfield foreign direct investments (FDI) is discussed. The paper highlights how there is not a single polarizing model, but a multiplicity of trends within specific countries and sectors. In general, FDI in research and development and education activities contribute to retraining, while manufacturing activities lead to a reduction in skills, increasing the demand for low-skilled workers.

Inward Greenfield FDI and Patterns of Job Polarization

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