The Takeover and Selection Effects of Foreign Ownership in Germany: An Analysis Using Linked Worker-Firm Data

Martyn J. Andrews, Lutz Bellmann, Thorsten Schank and Richard Upward

No 50, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: We use a linked employer-employee data set from Germany to estimate the wage effect of foreign-affiliates in East and West Germany. In addition, the wage effects of the large number of West German affiliates which are located in East Germany are also considered. The implemented techniques allow us to control both for worker- and plant-level unobserved components of earnings. We find large selection effects both in terms of worker and firm unobserved components of wages. The selection effect is larger for East German plants. Once it is taken into account, the genuine takeover effect is small and in some cases insignificantly different from zero. In contrast to the selection effect, the takeover effect is slightly larger in West Germany, where it amounts to 2.7 %.

Keywords: foreign ownership; wages; linked employer-employee data (search for similar items in EconPapers)
JEL-codes: C21 F23 J31 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/23792/1/DP50.pdf (application/pdf)

Related works:
Working Paper: The takeover and selection effects of foreign ownership in Germany: an analysis using linked worker-firm 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: https://EconPapers.repec.org/RePEc:zbw:faulre:50

Access Statistics for this paper

More papers in Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().