EIJS Working Papers Series
Fredrik Heyman, Fredrik Sjöholm
IS THERE REALLY A FOREIGN OWNERSHIP WAGE PREMIUM?EVIDENCE FROM MATCHED EMPLOYER-EMPLOYEE DATA.
() and Patrik Gustavsson Tingvall
Abstract: Numerous studies based 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, 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 ownership
with both domestic multinationals and local firms. Our results indicate
that employees in foreign-owned firms do not have systematically higher
wages than comparable workers in similar Swedish owned firms.
Keywords: FDI; Foreign ownership; Wages; Matched Employer-Employee data; Propensity score matching.; (follow links to similar papers)
JEL-Codes: C23; F23; J31; (follow links to similar papers)
32 pages, October 1, 2004
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