Working Paper Series,
Trade Union Institute for Economic Research

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

JEL-codes: F23; J31

27 pages, December 17, 2004

Full text files

WP201.pdf  

Download statistics

• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Sune Karlsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:fiefwp:0201This page generated on 2024-09-13 22:14:33.