IDEAS home Printed from https://ideas.repec.org/p/hhs/aareco/2009_014.html
   My bibliography  Save this paper

Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic

Author

Listed:

Abstract

In this paper we examine the relationship between wages, labour productivity and ownership using a linked employer-employee dataset covering a large fraction of the Czech labour market in 2006. We distinguish between different origins of ownership and study wage and productivity differences. The raw wage differential between foreign and domestically owned firms is about 24 percent. The empirical analysis is carried out on both firm- and individual-level data. A key finding is that industry, region, and notably human capital explain only a small part of the foreign-domestic ownership wage differential. Both white and blue collar workers as well as skilled and unskilled employees obtain a foreign ownership wage premium. Foreign ownership premia are more prevalent in older and less technologically advanced firms. Joint estimation of productivity and wage equations show that, controlling for human capital, the difference in productivity is about twice as large as the wage differential. The results indicate that the international firms share their rents with their employees

Suggested Citation

  • Eriksson, Tor & Pylikowa, Mariola, 2009. "Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic," Working Papers 09-14, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2009_014
    Note: Published as: Eriksson, T. and M. Pytlikova (2011): “Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic”, Economics of Transition (IF 0.679), Vol. 19 (2), pp. 371-395.
    as

    Download full text from publisher

    File URL: http://www.hha.dk/nat/wper/09-14_tormarp.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Foreign ownership; wages; productivity;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2009_014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helle Vinbaek Stenholt (email available below). General contact details of provider: https://edirc.repec.org/data/nihhadk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.