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Is There Really A Foreign Ownership Wage Premium?Evidence From Matched Employer-Employee Data
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Is There Really A Foreign Ownership Wage Premium?Evidence From Matched Employer-Employee Data

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Listed:
  • Heyman, Fredrik

    (Trade Union Institute for Economic Research (FIEF),)

  • Sjöholm, Fredrik

    (European Institute of Japanese Studies)

  • Gustavsson Tingvall, Patrik

    (European Institute of Japanese Studies)

Abstract

Numerous studies based on firm-level data have reported higher average wages in foreign-owned firms than in domestically-owned firms. This, however, does not necessarily imply that the individual worker’s wage increase with foreign ownership. Using detailed matched employer-employee data, we examine the effect of foreign ownership on individual wages, controlling for individual and firm heterogeneity as well as for possible selection bias in foreign acquisitions. We distinguish between foreign greenfields and takeovers and compare foreign ownership with both domestic multinationals and local firms. Our results indicate that employees in foreign-owned firms do not have systematically higher wages than comparable workers in similar Swedish owned firms.

Suggested Citation

  • Heyman, Fredrik & Sjöholm, Fredrik & Gustavsson Tingvall, Patrik, 2004. "Is There Really A Foreign Ownership Wage Premium?Evidence From Matched Employer-Employee Data," EIJS Working Paper Series 206, Stockholm School of Economics, The European Institute of Japanese Studies.
    • Handle: RePEc:hhs:eijswp:0206
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    More about this item

    Keywords

    FDI; Foreign ownership; Wages; Matched Employer-Employee data; Propensity score matching.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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