Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2022:6: Foreign Ownership and Transferring of Gender Norms

Daniel Halvarsson (), Olga Lark () and Patrik Gustavsson Tingvall ()
Additional contact information
Daniel Halvarsson: Ratio Institute
Olga Lark: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden
Patrik Gustavsson Tingvall: National Board of Trade, 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

39 pages, March 25, 2022

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