The Multinational Wage Premium and Wage Dynamics

Gianluca Orefice, Nicholas Sly and Farid Toubal

Working Papers from CEPII research center

Abstract: Using detailed administrative data linking French firms and workers over the years 2002-2007, we document a distinct U-shaped pattern in worker-level wages surrounding the time their employer is acquired by a foreign firm, with a dip in earnings observed in years just before domestic firms switch to MNE status. The dip in earnings is evident in both wages and in-kind payments given to workers. To guide our empirical approach, we present a simple model with fair wage considerations among workers and endogenous cross-border acquisition activity that predicts this U-shaped pattern, and characterizes the selection of domestic targets for acquisition by an MNE.

Keywords: multinational enterprises; wage premium; in-kind payments; fair wages (search for similar items in EconPapers)
JEL-codes: F14 F23 F66 (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-bec, nep-int, nep-lma and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Multinational Wage Premium and Wage Dynamics (2016)
Working Paper: The Multinational Wage Premium and Wage Dynamics (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2015-27

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