IS THERE REALLY A FOREIGN OWNERSHIP WAGE PREMIUM? EVIDENCE FROM MATCHED EMPLOYER-EMPLOYEE DATA

Fredrik Heyman (), Fredrik Sjoholm () and Patrik Gustavsson Tingvall ()
Additional contact information
Patrik Gustavsson Tingvall: European Institute of Japanese Studies, Postal: Stockholm School of Economics, P.O. Box 6501, S-113 83 Stockholm, Sweden

No 230, EIJS Working Paper Series from The European Institute of Japanese Studies

Abstract: Numerous studies 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 on the entire Swedish private sector, 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 owned firms with both domestic multinationals and local firms. Our results show a considerably smaller wage premium in foreign owned firms than what has been found in studies conducted at a more aggregate level. Moreover, foreign takeovers of Swedish firms tend to have no or even a negative effect on wages.

Keywords: FDI; Foreign ownership; Wages; Matched Employer-Employee data; Propensity score matching (search for similar items in EconPapers)
JEL-codes: C23 F23 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2006-11-01
View list of references View citations in EconPapers

Forthcoming in Journal of International Economics.

Downloads: (external link)
http://swopec.hhs.se/eijswp/papers/eijswp0230.pdf (application/pdf)

Related works:
Working Paper: IS THERE REALLY A FOREIGN OWNERSHIP WAGE PREMIUM?EVIDENCE FROM MATCHED EMPLOYER-EMPLOYEE DATA (2004)
Working Paper: Is there Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data (2004)
Working Paper: Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data (2006)
Journal Article: Is there really a foreign ownership wage premium? Evidence from matched employer-employee data (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:eijswp:0230

Access Statistics for this paper

More papers in EIJS Working Paper Series from The European Institute of Japanese Studies
Address: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Contact information at EDIRC.
Series data maintained by Nanhee Lee ().