The Wage Premium of Globalization: Evidence from European Mergers and Acquisitions

Harald Oberhofer, Matthias Stöckl () and Hannes Winner
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Matthias Stöckl: University of Salzburg

No 2012-1, Working Papers in Economics from University of Salzburg

Abstract: We provide evidence on the impact of globalization on labor market outcomes analyzing pay differences between foreign-acquired and domestically-owned firms. For this purpose, we use firm level data from 16 European countries over the time period 1999 to 2006. Applying propensity score matching techniques we estimate positive wage premia of cross-boarder merger and acquisitions (M&As), suggesting that foreign acquired firms exhibit higher short-run (post-acquisition) wages than their domestic counterparts. The observed wage disparities are most pronounced for low paying firms (with average wages below the median). Finally, we find systematic wage premia in Western European countries, but not so in Eastern Europe.

Keywords: Globalization; mergers and acquisitions; wage effects; propensity score matching (search for similar items in EconPapers)
JEL-codes: C21 F15 G34 J31 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2012-01-03
New Economics Papers: this item is included in nep-eur, nep-int, nep-lab, nep-lma and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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