Acquisitions, Multinationals and Wage Dispersion

Fredrik Heyman, Patrik Tingvall and Fredrik Sjöholm

No 675, Working Paper Series from Research Institute of Industrial Economics

Abstract: Multinational firms pay relatively high wages. Less is known about the wage structure within multinational and non-multinational firms. We examine the impact of acquisitions on wage dispersion in Sweden using a large matched employer-employee data set. Foreign acquisitions of Swedish firms increase wage dispersion by increasing wages for high-skilled workers. The positive impact is concentrated to CEOs and managers, whereas other groups are either negatively affected or not affected at all. The impact on high-skilled workers’ wages seems to be caused by the acquisition rather than the ownership itself, since ownership changes from foreign to Swedish result in similar increases.

Keywords: FDI; Multinational Companies; Foreign Ownership; Wage-Dispersion; Skill Groups; Matched Employer-Employee Data (search for similar items in EconPapers)
JEL-codes: C23 F23 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2006-11-21
New Economics Papers: this item is included in nep-cse and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Forthcoming as Heyman, Fredrik, Patrik Gustavsson Tingvall and Fredrik Sjöholm, 'Acquisitions, Multinationals and Wage Dispersion' in Canadian Journal of Economics.

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Working Paper: Acquisitions, Multinationals, and Wage Dispersion (2006)
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