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

Harald Oberhofer, Matthias Stöckl and Hannes Winner

No 416, WIFO Working Papers from WIFO

Abstract: We provide evidence on the impact of globalisation on labour market outcomes analysing 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 premiums of cross-boarder merger and acquisitions, 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 premiums in Western European countries, but not so in Eastern Europe.

Keywords: Globalisation; mergers and acquisitions; propensity score matching; wage effects (search for similar items in EconPapers)
Pages: 17 pages
Date: 2012-01
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.wifo.ac.at/wwa/pubid/43312 abstract (text/html)

Related works:
Working Paper: The Wage Premium of Globalization: Evidence from European Mergers and Acquisitions (2012)
Working Paper: The wage premium of globalization: Evidence from European mergers and acquisitions (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2012:i:416

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