Working Paper Series, FIEF - Trade Union Institute for Economic Research
Do Workers Benefit from Foreign Ownership? Evidence from Swedish manufacturing
Abstract: The paper examines whether foreign-owned firms pay higher
wages than domestically owned firms, controlling for a number of firm
characteristics. As in most other similar studies I find that this appears
to be the case. In particular, skilled labor seems to profit from working
in foreign-owned firms. Furthermore, I distinguish between Swedish
multinational enterprises (MNEs) and other domestically owned firms. In
accordance with the idea that MNEs are superior to other firms the former
pays significantly higher wages than other domestically owned firms.
Foreigners acquiring high-wage Swedish MNEs may thus account for the higher
wages in foreign-owned firms. Alternatively, the acquired firms might have
more favorable wage growth than non-targeted domestically owned firms.
Nevertheless, the two explanations are not mutually exclusive I only get
support for that foreign firms select high-wage firms (Swedish MNEs as well
as non-MNEs) for acquisition.
Keywords: Wage differentials; Multinational enterprises; Foreign ownership; (follow links to similar papers)
JEL-Codes: F23; J31; (follow links to similar papers)
27 pages, December 17, 2004
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