Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers

Taylor Larry W. (), Hyclak Thomas J. (), Sedlak Piotr () and Adamchik Vera A. ()
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Taylor Larry W.: Economics Department, College of Business, Lehigh University, Rauch Business Center, 621 Taylor St, Bethlehem, PA 18015 USA
Hyclak Thomas J.: Economics Department, College of Business, Lehigh University, Rauch Business Center, 621 Taylor St, Bethlehem, PA 18015 USA
Sedlak Piotr: International Management Department, Cracow University of Economics, Rakowicka 27, 31-510 Cracow, Poland
Adamchik Vera A.: College of Business, University of Houston-Victoria, 3007 N Ben Wilson St, Victoria, TX 77901 USA

International Journal of Contemporary Management, 2024, vol. 60, issue 1, 75-91

Abstract: The study attempts to estimate the causal relationship between foreign company ownership and wages that is driven by ownership per se, and not by observable or unobservable worker and firm characteristics. We employ proprietary data from surveys conducted by Sedlak & Sedlak, a major Polish HR consulting firm, with our pooled cross-section data set comprising over 300,000 men and 250,000 women working in the Polish labor market between 2013 and 2017. The foreign-firm wage premium is estimated by several techniques, ranging from ordinary least squares and two-stage least squares to a recently developed frequentist RX-2SLS econometric procedure that relaxes IV assumptions via the exclusion restriction. Our major findings are: (1) regardless of gender, Polish workers employed by majority foreign capital firms earn a significant wage premium; and (2) the foreign-firm wage premium is substantially larger for women, suggesting that the wage policies used by foreign-owned firms in Poland have an equalizing effect on the gender wage gap.

Keywords: foreign-firm wage premium; Poland; causal effect; plausibly exogenous; local-to-zero Bayesian estimator; modified two-stage least squares procedure (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ijcoma:v:60:y:2024:i:1:p:75-91:n:2

DOI: 10.2478/ijcm-2024-0003

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