Foreign Direct Investment in Ireland 2018

Figure 4.1 shows that the average wages of Irish MNEs have been consistently greater than the average wage of foreign-controlled MNEs during the period examined. Both the average wages of foreign-controlled MNEs and Irish MNEs are however greater than those of Irish firms. Figure 4.1 also shows that the wage growth for both Irish and foreign-controlled MNEs, which compete internationally, has been higher than that of Irish firms over the course of the period 2012-2018.

In Figure 4.2, the average wages of foreign-controlled MNEs are broken down further into the regional ownership of the enterprise. Superimposed on this figure is the average wage paid by Irish firms and the average wage of all foreign-controlled MNEs.

This figure shows that it is largely European-owned foreign affiliates which are driving the average wages of all foreign-controlled affiliates below that of the Irish MNEs (see Figure 4.1), this is because there are many European ultimately controlled MNEs operating in Ireland that are retail firms which pay lower wages relative to other sectors as shown in Figure 4.5.

Figure 4.3 shows that average wages in enterprises with ownership in Europe, with the exception of Switzerland and the Netherlands, were less than the average of all foreign-controlled MNEs. Wages paid by firms ultimately controlled by investors in the UK pay wages very comparable with Irish firms: this is result of the fact Ireland has a substantial amount of retail firms with ultimate ownership in the UK. 

Figure 4.4 shows the average wages in enterprises controlled in extra European investor countries. The average wages in enterprises controlled in the other extra European significant investor countries are higher than the average wage paid by Irish firms across the period shown, with the exception of MNEs with ultimate ownership in China. Between 2012-2016 the average wages of MNEs with ultimate ownership in China were less than those of Irish firms, but increased above the Irish firm wage level in 2017 and 2018. 

Figure 4.6 shows the average wage in foreign-controlled enterprises by sector. The information and communication sector pays the greatest average wage. Retail, as well as administrative and support services pay the lowest average wages by a significant amount.