Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 354: Ratio Working Paper No. 354: Foreign Ownership and Transferring of Gender Norms

Daniel Halvarsson (), Ola Lark and Patrik Gustavsson Tingvall ()
Additional contact information
Daniel Halvarsson: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Ola Lark: Lund University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Patrik Gustavsson Tingvall: Stockholm School of Economics, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

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, April 19, 2022

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