Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 360: Do gender norms travel within corporations? The impact of foreign subsidiaries on the home country gender wage gap.

Daniel Halvarsson (), Olga Lark (), Patrik Tingvall (), Priit Vather () and Josefin Videnord ()
Additional contact information
Daniel Halvarsson: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Olga Lark: Lund University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Patrik Tingvall: Stockholm School of Economics, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Priit Vather: Estonian Research Information System, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Josefin Videnord: Uppsala University, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: In this note, we provide evidence that gender norms can be transferred within firms and across borders by means of foreign direct investment. Using microdata from both Sweden and Estonia, two countries with vastly different levels of gender inequality, we find that firms in Sweden with strong intra-firm linkages to Estonia display a relatively large gender wage gap at home.

Keywords: Gender wage gap; FDI; Subsidiary firms; Internationalization; Wages

JEL-codes: C23; F21; F23; F66; J16; J31

Language: English

7 pages, August 31, 2022

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