Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1433: Foreign Ownership and Transferring of Gender Norms

Daniel Halvarsson, Olga Lark () and Patrik Gustavsson Tingvall
Additional contact information
Daniel Halvarsson: The Ratio Institute
Olga Lark: Lund University, Postal: and Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Patrik Gustavsson Tingvall: The National Board of Trade, Postal: Södertörn University

Abstract: In this paper, we study foreign ownership as a vehicle for transferring gender norms across international borders. Specifically, we analyze how the wage differential between men and women in Swedish firms is affected by the degree of gender inequality in the home country of foreign investors. The results suggest that gender norms of the home country matter—the gender wage gap in foreign-owned subsidiaries appears to increase with the degree of gender inequality prevailing in the investors’ home market. This finding is identified from within job-spell variation in wages and proves robust across a series of specifications.

Keywords: Foreign ownership; Gender inequality; Gender wage gap; Internationalization; Gender norms

JEL-codes: F66; J16; J31

Language: English

42 pages, June 29, 2022

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