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Do multinationals transfer culture? Evidence on female employment in China

Heiwai Tang and Yifan Zhang

Journal of International Economics, 2021, vol. 133, issue C

Abstract: We study the global diffusion of culture through multinationals, focusing on gender norms. Using data on manufacturing firms in China from 2004 to 2007, we find that foreign affiliates from countries with a more gender-equal culture tend to employ proportionally more women and appoint more female managers. They also generate cultural spillovers, as we find that domestic firms' female labor share increases with the prevalence of foreign affiliates in the same industry or city. Based on a multi-sector model that accounts for firm heterogeneity in productivity, gender bias, and learning, we perform counterfactual exercises. By hypothetically eliminating firms' gender biases, we observe a 5% increase in China's aggregate total factor productivity, 19% of which is due to spillovers from foreign affiliates.

Keywords: Cultural spillovers; Gender inequality; FDI; Misallocation; China (search for similar items in EconPapers)
JEL-codes: F11 F21 J16 L22 O47 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:133:y:2021:i:c:s0022199621000982

DOI: 10.1016/j.jinteco.2021.103518

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