Several recent studies have found evidence of positive spillovers concentrating on the wage effects of FDI through its impact on labour demand and supply. Using data for the UK electronics industry, Driffield and Girma (2003) find that FDI has a large positive effect on wages in domestic firms through its impact on labour demand and a small positive effect through its impact on labour supply. Moreover, wage spillovers appear to be more important for skilled than unskilled workers, which may reflect the relative scarcity of skilled labour. Finally, using a cross-section of worker-level data for Indonesia, Lipsey and Sjohölm (2004) find that FDI is positively associated with average wage levels in domestic firms, particularly those of non- production workers.